Repayment Mortgages

With capital repayment, you will be repaying both the interest and the original loan in small amounts every month. This will gradually reduce the overall amount owed to the lender.

You may also be able to pay lump sums, or increase the amount you pay each month, thereby reducing the term of your mortgage.

Pros:

• You can be certain that all debt will be cleared at the end of the term, as long as you keep up repayments.
• You will be less affected by fluctuations in the stock market

Cons:

• Check for any penalties or charges if you choose to make a larger lump sum payment or pay off the mortgage early