Episode 11 - Mortgages For Beginners - Different Types & How To Choose For You

In Episode 11 of the Money Mechanics Podcast, Sarah Poynton breaks down the differences between interest-only and repayment mortgages. Whether you’re a first-time homebuyer or considering refinancing, Sarah provides essential insights into how each type of mortgage works, their pros and cons, and how they impact your financial future.

Learn the key differences, such as lower monthly payments with interest-only mortgages versus full ownership with repayment mortgages. Sarah also discusses how to make the best mortgage choice for your long-term goals and the importance of consulting with a mortgage broker to secure the best deal.

If you’re thinking about homeownership or refining your mortgage strategy, this episode is packed with actionable advice to help you make informed decisions. Tune in to get a clear understanding of your options and how to navigate the mortgage landscape!

1. What is a Mortgage?
   
   
   • Understanding the definition and history of a mortgage ("death pledge").
   • The basics of getting a mortgage for buying your first home or an investment property.
2. Interest-Only Mortgages:
   
   
   • What interest-only mortgages are and how they work.
   • The pros and cons of paying only the interest and the risks of owing the original debt after the mortgage term.
3. Repayment Mortgages:
   
   
   • How repayment mortgages allow you to pay down the capital and interest over time.
   • The benefits of eventually owning your property outright and becoming mortgage-free.
4. Key Differences Between Interest-Only and Repayment Mortgages:
   
   
   • Comparing monthly payments, long-term financial impact, and future ownership of the property.
   • The advantages of interest-only mortgages for lower monthly payments and the long-term benefits of repayment mortgages for full ownership.
5. Choosing the Right Mortgage for You:
   
   
   • How to decide which mortgage fits your financial goals.
   • The importance of consulting with a mortgage broker to find the best deal and guidance on refinancing when needed.
6. Resources Mentioned:
   
   
   • Money Mechanics Book: Includes deeper insights into leveraging other people's money and understanding your mortgage options. Grab a copy here www.sarahpoynton.com/moneymechanics. 
   • Mortgage Brokers: How brokers can help you navigate the market and find the right product for your needs.

• Website: www.sarahpoynton.com
• Social Media: www.instagram.com/moneymechanics.global
• YouTube: www.youtube.com/@SarahPoynton