These are often known as Capital & Interest Mortgages, where you pay back some of the capital borrowed each month as well as the interest on the loan, such that you will have cleared the mortgage in full at the end of the term.

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With repayment mortgages the “term” is important. The shorter the term, the higher the monthly repayments (you are paying back more of the capital each month) but the lower the total overall cost (you have the debt for a shorter period of time and pay less interest).

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Repayment mortgages are generally preferred over interest only mortgages however we always advise on the most suitable mortgage to meet both current requirements as well as longer term objectives. When it comes to the actual term of the mortgage, it may well change at different stages throughout your life depending on your circumstances and the affordability.