There are many types of mortgages available on the market, and it can be confusing to know which one is right for you. We've outlined the basics below, but our advice would be to seek advice from a qualified mortgage adviser. Contact one of our mortgage advisors today to discuss.
With this type of mortgage (also known as capital and interest) you repay part of the amount borrowed together with the interest being charged each month. In the earlier years, the majority of your monthly repayment is made up of interest, however towards the latter part of your mortgage term the situation is reversed with the majority of your monthly payment reducing the amount borrowed.
With this type of mortgage you are only paying interest each month. This means that although your payments will be lower, the amount you borrow will still be outstanding at the end of the mortgage term. You'll need to make alternative arrangements to pay off the mortgage to avoid the property having to be sold, such as taking out an ISA.