Every lender has its own criteria, and it’s important to speak to an expert to evaluate your options.
Mortgage Services LeedsA repayment mortgage, on the other hand, uses your monthly payments to pay back the initial sum you borrowed.
You have the security of owning the home at the end of the mortgage term, provided you make all of your repayments.
This means that to own your property at the end of the mortgage term, you need to repay the entire balance through a repayment vehicle, such as an investment you might have running alongside the mortgage, or any type of a savings plan, such as an investment fund, an ISA, or pension.
There is a higher risk of default, in case your repayment vehicle ends up performing poorly.
Mortgage Repayment vs. Interest Only Mortgages. Choosing between a repayment or interest-only mortgage is often an important financial decision.
Cons: Your monthly payments are generally much higher compared to interest-only mortgages. Consider using an online mortgage calculator to work out how much your monthly payments will be for both cases.
