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Rosalind, Chesham
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“The whole process was so quick from filling in my details to the adviser calling me. I'm looking to complete on my remortgage next week.”
Peter, Nottingham
A repayment mortgage is one where your monthly mortgage payments are made up of two elements, i) capital repayment to pay off the money you have borrowed from your lender and reduce the capital month on month ii) interest payments which pay off the interest charged by the lender on your loan. A repayment mortgage is generally regarded as the preferable option to an interest only mortgage as it guarantees that at the end of the term the mortgage is paid off in full and you own your property outright. But, because you are reducing the capital each month your monthly repayments are higher than for an interest only mortgage.
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