Repayment or Interest-only mortgage?

Repayment mortgage (also called a capital and interest loan)

Your monthly payments gradually pay off the amount you have borrowed as well as the interest charged on the loan. Provided you make all the agreed payments, the loan will be fully paid off by the end of the mortgage term.

Could this be right for you? 

Consider whether you want the security that, provided you keep up with the payments, your mortgage will be paid off at the end of the mortgage term.

Click here to find out how much a repayment mortgage could cost.

Interest-only mortgages

With this type of mortgage your monthly payments only cover the interest on the loan. They do not pay off any of the money you have borrowed (the capital). You will need to arrange an alternative way to pay off the capital at the end of the mortgage term, for example by paying money into a savings or investment plan.

It is your responsibility to make sure you have enough money to repay the mortgage at the end of the term, otherwise you could lose your home.

Could this be right for you? 

Consider whether you're comfortable with the risk that you may not be able to pay off the full loan at the end of the mortgage term.

Click here to find out how much an interest only mortgage could cost