Repayment Mortgage
With a repayment mortgage you make monthly payments that cover both the interest on the loan and the repayment of the loan itself.

In the early years, much of your monthly payments will go towards paying the interest on the loan, but in later years the bulk of your payments will go towards reducing the loan. A repayment mortgage offers the reassurance that once the final repayment has been made you are finished with the mortgage (providing all the repayments have been made). While some borrowers may be attracted by the peace of mind a repayment mortgage can offer, there may be other issues that need to be considered.

Contact our professional advisers for impartial advice on whether a repayment mortgage is best for you.

Interest Only Mortgage
With an interest-only mortgage you only pay interest on the loan for the term of the mortgage. You usually also pay into an investment product for the term of the mortgage and this will be used to repay the full amount of the loan at the end of the term. This type of mortgage potentially offers more flexibility for people moving house regularly. Typically, the investment products associated with interest-only mortgages are endowments, ISAs (or PEPs), or pension plans.

Our professional advisers can provide impartial advice on which type of product would be best for you.

Combined Mortgage
With a combined repayment/interest-only mortgage you will use both repayment and interest-only methods to repay the loan. This may happen if, for instance, you already have an investment policy in place before seeking a mortgage. You may be able to use this product - perhaps an endowment, an ISA or a pension plan - to repay one part of the loan, and repay the remaining part with a repayment mortgage.

Contact our professional advisers for impartial guidance on whether a combined mortgage may the best option for you.

Period of Repayment Mortgage
Most mortgages have a set period (term) of 25 years, but you may be free to choose a shorter / longer term than this. Obviously, the shorter the term the higher the monthly repayments you will have to make. Contact our professional advisers for impartial guidance.