With a repayment mortgage, you pay off part of the loan each month (the amount you owe), as well as the interest charge. This guarantees that your mortgage will be repaid in full at the end of the term, as long as you keep up the repayments. Here are some of the key points to take into account to help when looking at this type of repayment method.
Would you prefer the guarantee that, as long as you make your mortgage payments, you're mortgage loan will be Do you want the peace of mind that you’re not relying on savings, investments or some other method to repay your Would you prefer one direct debit for your mortgage rather than multiple ones to cover a repayment plan as well as Do you like to see your mortgage balance coming down?
With an interest only mortgage, you only pay the interest each month on the amount you owe. This means that at the end of the mortgage term you will still have to find a lump sum to pay off everything you borrowed, so you’ll need to have a suitable repayment plan in place. Here are some of the key points to take into account to help when looking at this type of repayment method.
Will the repayment plan produce a lump sum that is sufficient to repay everything you owe at the end of the mortgage Will it concern you that it will cost you more over the life of the mortgage than it would if you took out the loan on a Find out more about - repaying your mortgage and the types of repayment plan we will accept for an interest-only mortgage.
