Ways to Repay your mortgage

There are two ways to repay your mortgage:

A Repayment Mortgage where your monthly payments consists of interest on your mortgage and repayment of your mortgage

An Interest Only Mortgage where your monthly payment  just consists of paying the interest on your mortgage

With an Interest Only mortgage the monthly payments are lower but you will need to have another means of repaying your mortgage, by building a separate pot of money to repay your mortgage when it finishes. This might be by:

 

If you are considering an Interest Only mortgage , your  Lender will need to ensure your have a clearly understood and credible way to repay your mortgage