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Types of Repayment

Repayment—(also known as Capital and Interest )

Your monthly payments gradually pay off the amount you owe, as well as paying the interest charged on the loan.

Provided you make all the agreed payments, the loan will befully paid off by the end of the mortgage term.


Your monthly payments cover only the interest on the loan. They do not pay off any of the capital. You will need to arrange to pay separately into a savings or investment scheme to build up a lump sum to pay off the mortgage at the end of the term.

It is your responsibility to make sure you have enough money to repay the mortgage at the end of the term.

Split a combination of Repayment and Interest-Only

This is where you pay part of your mortgage on a repayment basis with the balance being paid on an interest only basis.

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