Repayment mortgage

Repayment mortgages are ideal if you want the reassurance that, at the end of the loan period, your debt to the mortgage lender will be repaid in full. This type of mortgage is in contrast to an interest-only mortgage where there is no such guarantee.

The way a repayment mortgage works is pretty simple. Each monthly instalment pays off both the capital (i.e. the money borrowed) and the interest charged on the amount outstanding. That’s why you may hear this referred to as a capital and interest mortgage.

Because you are paying off both the capital and interest with each payment, the amount you give to your lender each month is typically more than it would be if you had an interest-only mortgage. But, with a repayment mortgage, there is no need to also put money into a separate investment vehicle.

For more information please click on the type of mortgage you are interested in:

• Repayment Mortgage - repay the whole loan amount back with interest
• Interest Only Mortgage - repay only the interest on a mortgage
• Endowment Mortgage - a combination of a loan and an investment
• ISA Mortgage - combines and loan and an investment with an ISA
• Pension Plan Mortgage - a tax efficient but non flexible option
• Buy To Let Mortgages - for second property rentals
• First Time Buyers - get on the property ladder
• Spanish Mortgage (for holiday home) - to buy your dream holiday house!

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