Repayment Mortgage
A repayment mortgage is the most common type of mortgage in the UK.
1 min read Buying a Home
What it means
A repayment mortgage is the most common type of mortgage in the UK. Each monthly payment covers some of the money you borrowed as well as interest. By the end of the length of the mortgage, the loan should be fully repaid if you've made all your payments.
Example
You borrow £220,000 over 30 years. Every monthly payment reduces the amount you owe while also covering interest.
Why it matters
Knowing whether your mortgage is repayment or interest-only affects how you'll repay your loan.
Each payment gradually increases the share going towards repaying the loan as the balance falls.
Will I own my home at the end of the mortgage?
Usually yes, provided you've made all your repayments.