This is the most common type of mortgage repayment that we arrange for our clients. Monthly repayments cover an element of the capital as well as interest accrued. As the term progresses the balance of the capital will reduce as well as the interest. The loan will be fully repaid at the end of the term with no surprises from mortgage providers requesting a lump sum to repay the outstanding mortgage balance.
Where an interest only mortgage is arranged. Clients will only repay the interest each month from the accrued interest. At the end of the mortgage term the outstanding capital will need to be repaid. This type of mortgage is popular with clients who meet lenders interest only criteria in terms of a suitable repayment vehicle for the capital.