Nationwide's specialist lender UCB Home Loans is offering an online mortgage calculator for “part-and-part” mortgages – loans containing both interest-only and repayment components.
The calculator can be found on UCB's website, www.ucbhomeloans.co.uk “Part-and-part” mortgages are a mixture of interest-only and repayment loans, which can use a veh-icle such as an endowment to pay off part of the mortgage and a mixture of capital and interest payments to cover the rest.
The calculator also provides figures for repayment mortgages and interest-only loans. The adviser enters the purchase price, length of loan and amounts to be borrowed on a repayment or interest-only basis to work out the repayment.
UCB says the loans are becoming increasingly popular as borrowers use existing policies for part of their loan and pay the remainder on a repayment basis.
UCB Home Loans managing director Charles Reed says: “Part-and-part loans currently account for 10.2 per cent of the mortgages we approve each month. This has doubled in six months and is set to grow as more people become aware of the benefits.
“Using an endowment to cover part of the mortgage is a good way to obtain maximum benefit from the policy, while ensuring the full amount is repaid at the end of the term.”