What is a Repayment Mortgage?

A repayment mortgage is where you borrow a lump sum over a fixed period of time (usually 25 years but this time can be shorter or longer).  You pay the interest and some of the capital on a monthly basis to the lender.

Advantages of a Repayment Mortgage

  • Some flexibility with repayments.
  • The only way you can be 100% certain the loan will be repaid at the end of the term, providing repayments are maintained throughout.

 Disadvantages of a Repayment Mortgage

  • Monthly mortgage payments will be higher than interest only mortgages covered by an investment/life assurance to repay the capital.
  • Only a small amount of capital is paid off in the early years as the monthly mortgage payment consists of a higher proportion of interest to capital repayment.

St Chads viewAFP Shrewsbury is a trading style of Gary Harper (FRN 755477) who is an Appointed Representative of AFP Partnership (FRN 300003). AFP Partnership are authorised and regulated by the Financial Conduct Authority. Certain products, including Buy to Let and Commercial mortgages, are not regulated by the Financial Conduct Authority. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER LOAN SECURED ON IT. If you find require further information on repayment mortgages and are looking for further advice please call our office in Shrewsbury and speak to a mortgage adviser. We are available by telephone, 01743 364377, or e-mail info@afpshrewsbury.co.uk


Please leave this field empty.

Please un-check this box to say that you're not a robot