What is a Repayment Mortgage?
There are various different types of Mortgages available and you should seek independent financial advice on which type of Mortgage best suits you.
In brief, a Repayment Mortgage is one that both the capital and interest are repaid each month. This means the ultimate balance owed to the mortgage lender decreases each month.
This can be contrasted to an Interest Only mortgage, whereby only the interest is repaid each month and not the capital. In this scenario, the capital is usually repaid in full at the end of the mortgage term. Parties should save money each month to ensure they have enough funds to repay the capital in full when due.
Repayment mortgages are the most common type of mortgage. If circumstances allow, it may be possible to switch between a repayment mortgage and an interest only mortgage for a brief time, for example if you are going through a difficult financial time.
We advise that clients obtain independent financial advice to determine which type of mortgage is the most appropriate for them.
If you would like any further information or advice in relation to buying or selling a property, please contact our specialist residential conveyancing lawyers: Karen Grimshaw on 01902 796934 (firstname.lastname@example.org) or Nabjit Dubb on 01902 328358 (Ndubb@georgegreen.co.uk) at our Wolverhampton office; or Kevin Gilbert on 01384 340 561 (Kgilbert@georgegreen,co.uk) at our Cradley Heath office.