With a repayment mortgage (sometimes called ‘capital and interest’) your mortgage payment covers the interest and also helps to reduce the amount you owe (‘the capital’). As long as you keep up your payments, you can be sure your whole mortgage will be paid off at the end of the mortgage term.
Interest only mortgage+
With an interest only mortgage your mortgage payment only covers the interest on what you owe. At the end of the mortgage you pay off the amount you’ve borrowed using savings or investments built up during the mortgage period.
If you take out an interest only mortgage you must be sure that you will have enough money to repay the mortgage at the end of the term.
1If you choose to repay your fixed rate loan amount in full or overpay by more than 10% each calendar year, you'll need to pay an early repayment charge.
If your mortgage comes with the additional benefit of cashback, you will only need to repay this if you repay your mortgage within the first two years.
- A fixed rate mortgage gives you the peace of mind that comes from knowing exactly what your payments will be each month during the 'fixed rate period', which is the amount of time you pay an introductory rate on your mortgage.
- A tracker rate mortgage tracks above the rate of interest set by the Bank of England (the base rate). Your payments will increase or decrease in line with changes to this base rate.
On the majority of our mortgages you'll benefit from a free standard valuation on a property valued up to £2.5 million.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.