Part & Part or combination

Part of the mortgage is on Interest only, which could be due to an existing investment policy and the remainder is on a repayment basis. This is a combination of the above methods.

The repayment part is usually set to the same term as the interest only part but if this puts a strain on the budget then it is possible to take the capital & interest part of the loan over a longer period possibly back to 25 years. This will keep your monthly mortgage payment down but unfortunately it will mean that you are paying out more interest as well as having mortgage payments for a longer period of time. The investment part of the mortgage will still be repaid at the same time provided it has achieved its target. It is then possible to review the situation to see if you can afford to reduce the remaining term bearing in mind that you no longer have the interest only part of the loan or the investment premium to pay each month.