Our Repayment Mortgage is a straightforward capital repayment mortgage. Your monthly payments cover both interest and part of the capital, which means that as long as you make all of your monthly payments on time, your mortgage will be repaid in full at the end of the term.
Here's an example of how a repayment mortgage works:
Jenny and Peter borrowed £100,000 to buy their new home and chose to repay this over a 25 year term.
The mortgage payment example provided is for illustration purposes only.
Every month they make regular payments of £528, which covers the interest charges on their loan of 3.99% as well as part of the capital. The outstanding balance reduces with every payment.
Then at the end of the 25 year term they have would have paid off their mortgage in full (so long as they made their payments each month).
† Our Mortgage Team is available Mon to Fri 8am to 10pm, Sat 8am to 8pm and Sun 9am to 8pm