Which mortgage?

(A) Repayment / Annuity Mortgage

Traditionally this has been the most popular mortgage for Irish Nationwide customers. With this mortgage each monthly repayment includes a portion of interest and a portion of capital. Initially the first repayments will be interest repayments, thus allowing the maximum Tax relief benefit. In the latter years of the mortgage increasing amounts of the capital sum are repaid in order to clear the mortgage.

You are required to take out a mortgage protection policy which can be arranged for you with a leading Life Assurance Company. The Policy is assigned to Irish Nationwide as security for the loan so that in the event of your death the loan is automatically paid off. Mortgage Protection for the amount of the loan will not discharge on your death, any arrears of interest and late charges, or redemption fees payable on fixed rate loans.

(B) Interest-Only Mortgage

With this type of mortgage, your monthly repayment covers only the interest on your loan and not the capital. The original amount you borrowed stays the same for the term of the mortgage. At the end of the term, you must repay the original loan in a lump sum. You can do this by:

taking out a pension policy or an endowment policy that is expected to grow in value by enough to repay the original loan; or
selling the property, assuming that the proceeds will pay off the loan.

Remember, there is no guarantee that either selling your property or using the proceeds from your policy will create enough money to pay off your original mortgage.

You may be required from time to time to increase the amount of the premium payable on the insurance policy relating to the loan in order to secure an increase in the proceeds on maturity.

For more information on Endowment mortgages, please see our Insurance section.

For further information and warnings click here.

WARNING:
There is no guarantee that the proceeds of the insurance policy will be sufficient to repay the loan when it becomes due for repayment.

For further details contact your Local Branch or call + 353 (0)1 609 6000 or email: mortgages@inbs.ie

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