Repayment mortgages

Also known as Capital & Interest Mortgages because an element of capital is being repaid each month as well as interest. In the early years very little capital is being paid off but as time goes by more of the monthly payment repays the capital and less to interest. This type of mortgage guarantees that the loan is repaid at the end of the mortgage term provided that no payments have been missed. There is no built in life cover protection involved in this type of mortgage so there is no cover against the unexpected, therefore you should refer to the protection section for further details. Like wise there is no investment involved with this type of repayment vehicle, which eliminates the risk that the mortgage will not be repaid at the end of the term.

Think of a repayment mortgage the same as a loan in that you are repaying the capital as you go along.