Repayment Mortgages 

This type of mortgage allows you to repay the principle sum that you borrowed when you took out the loan over an agreed term of years. Gradually, you will be repaying the outstanding balance until the loan is completely repaid. It is by far the cheapest method over the long term because the interest charged to the loan also reduce as the repayments are made.

If your not sure what to do, consider these tips. 

• Monthly repayments on a capital repayment mortgage (a repayment mortgage) will always be more expensive than an interest only mortgage but over the long term will work out cheaper. Sounds confusing? Don't worry, it works like this: A repayment mortgage charges the interest rate applicable plus you pay a capital element which helps repay the loan. Over time, the capital element will increase because you are gradually reducing the amount outstanding. As the balance gradually reduces so too does the interest charged on the loan. This allows you to start paying more capital as the mortgage term progresses.

• If you can afford it, always consider a repayment type loan.

• If you cannot afford the full cost of a repayment mortgage, consider a part and part loan (see section detailing Part & Part mortgages).

• If the payments are too high consider extending the term but remember the longer the term the more interest you will pay overall.

• You can always change your mortgage to an interest type loan later on if you find the payments too expensive and the lender agrees with your proposal.

Feel free to call us if you would like to discuss your options.

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