Repayment Mortgages
A Repayment Mortgage is the alternative to an interest only mortgage. With a repayment mortgage you pay back some of the capital borrowed each month as well as the interest on the loan.
Repayment Mortgages are often known as Capital & Interest Mortgages.
When the mortgage is taken out, the monthly repayments are calculated such that if you kept the mortgage for the full term, eg 25years, at the end of the 25year term you would have paid back all of the capital borrowed.
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).
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.
Areas covered include: Wetherby, Tadcaster, Boston Spa, Collingham, Kirk Deighton, Leeds, Harrogate, York...
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