Ways of repaying your mortgage
The way you repay your mortgage is important as you need to ensure the capital is repaid at the end of the mortgage term.
When you speak to us, we will give you all the guidance you need to ensure the repayment method is appropriate to you.
To view our current interest rates please click here
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Repayment |
Interest Only |
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Also known as |
Capital and Interest |
Sometimes called investment linked when used with a savings vehicle to repay the loan |
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What you pay back |
Pay back the amount you have borrowed and the interest
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Pay back just the mortgage interest |
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Description |
With this option you're guaranteed to pay off your entire mortgage by the end of the term, provided you don't miss any payments. The amount that you repay each month is made up of capital and interest calculated to repay all of your mortgage by the end of the term. |
This option means your payments cover just the interest on your mortgage. You'll need to make sure you have a way to pay off the capital element of your mortgage on or before the end of the mortgage term - such as an investment. Remember, though, to include the cost of any investment when you're working out what you can afford to pay each month.
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All applications are subject to status and our current lending criteria. This means that the amount we will lend you will depend on your individual circumstances, the type of property and the amount you borrow. For example, we may require a higher deposit if you are buying a flat or a new build property.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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