Repayment Mortgages Tips

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Tips - Repayment Mortgages

  • Repayment mortgages are the most popular types of mortgage for a reason - they allow you to pay off your mortgage in even monthly instalments, leaving you entirely debt free.

  • A repayment mortgage is ideal for anyone looking to climb the property ladder.

  • Monthly instalments may be cheaper for interest only mortgages, but they end up more expensive than repayment mortgages in the long run.

  • In the longer term, repayment mortgages become far less sensitive to fluctuations in the interest rate.

  • Endowment mortgages, a combination of an interest only mortgage and an endowment policy, may seem attractive, but there is a risk that the income from the endowment will not be enough pay off the loan at the end of the term.

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