- The repayment mortgage is a simple concept. The borrower makes regular monthly payments over a period of time comprising capital and interest so that at the end of the term the mortgage is paid off.
Main advantages of a repayment mortgage:
It’s simple to understand.
The borrower sees that the amount borrowed is being reduced and assured. - The Interest only Mortgage, with this mortgage the borrower pays interest only by Monthly installments over an agreed period of years. At the end of the term the capital sum borrowed is repaid.
Main Advantages:
Few long-term investments will give you a guarantee as to the maturity value at the end of the term.
There is no reduction in the capital sum owed throughout the term. We recommend seeking professional advice before making a final decision on a mortgage.
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