Mortgage types

There are the two main mortgages. These are called repayment or interest only.

Repayment mortgage
With a repayment mortgage you make monthly repayments for an agreed period (the term) until you've paid back the loan and the interest.

Interest only mortgage
With an interest only mortgage you make monthly repayments for an agreed period but this will only cover the interest on your loan. You'll normally also have to pay into another savings or investment plan that'll hopefully pay off the loan at the end of the term.

Read more on interest rate deals

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