There are some hard and fast rules to borrowing funds and some leeway too. Many people employ a Financial Advisor who will calculate for you the amount you are likely to borrow given your current circumstances and whether you are likely to need an Adverse Credit product or a Self Employed mortgage.
The amount of deposit you put down will be directly influenced by the type of mortgage you go for.
The policy has two parts. A monthly interest payment - paid to the lender and a monthly payment into an endowment policy which is mostly invested in stocks and shares.
During the 1980's and 90's many people chose to use endowments to repay their mortgages, interest rates were high and the stock market was booming.
So of course your policie's success depends on the performance of the fund into which your monthly payments are invested.
Many people are now left with the possibility that because of the low returns during the 1990s and since, there may be a shortfall and the possibility that the endowment will not meet the payment of the loan at the end of the mortgage term as well as not providing them with a welcome lump sum left over.
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