Mortgage Repayments

If you're looking for the reassurance that your debt to your mortgage lender will be paid off at the end of your loan period then repayment mortgages are for you.

Each of your monthly installments pay off the money borrwoed and the interest that's been charged. This could also be referred to as a capital or interest mortgage.

Repayment mortgage's monthly payments are normally higher than those for an interest only mortgage. This is because you're paying off the capital all by yourself.

You will typically need some life insurance to go with your repayment mortgage. This is because lenders require this as a backup insurance for them should anything happen to you in the period.

Some good points of repayment mortgages are that the total will be repaid at the end of the loan perios. Also the debt will reduce as each month passes.

Some cons being that you won't have the opportunity to use good performaning investments as a method to pay off your mortgage early. But you are allowed to maje overpayments each month should you want to.