1st Direct Mortgages
What is a Repayment Mortgage?
A repayment mortgage is one where your monthly repayment to your mortgage lender consists of a mixture of the capital you owe and the interest on it. If you make all the payments on your mortgage as per the agreement, your mortgage is guaranteed to be paid in full following the final payment of your mortgage term.
A repayment mortgage is the most popular type of mortgage in the United Kingdom and is the safest option to make sure your home is your own at the end of the term.
This is the safer mortgage option as opposed to an interest only mortgage which carries a degree of risk depending upon your circumstances.
Your home is at risk should you not keep up the repayments on any type of mortgage.