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Repayment


With a repayment mortgage, also known as a capital repayment mortgage, you make monthly payments which contribute towards the total amount borrowed and the interest payable. Repayment mortgages are repaid over a specified period. Assuming you continue to make all your monthly contributions in full, the mortgage is guaranteed to be paid off in full at the end of the arranged mortgage term.

 

During the early years of the mortgage, the majority of each monthly payment goes towards paying the interest owed. The amount paid off initial capital loan increases each year as the mortgage terms progresses.

 

Advantages

 

  • Provided that you make all the required monthly mortgage payments, you are guaranteed to pay off your mortgage in full by the end of the repayment period.
  • You are less likely to suffer from negative equity because your mortgage balance will be reducing month on month.
  • Assuming your property has not dropped in value, as the capital repaid increases you will see an increase in the level of equity in your property. Consequently, when you remortgage or move home you may find it easier to obtain a new mortgage.

 

Disadvantages

 

  • You would be unable to benefit from the stock market if it has performed well over the period of the mortgage.
  • Payments are higher than on an interest only mortgage.

 

Your property may be repossessed if you do not keep up repayments on your mortgage.

 

For mortgages we are paid NO FEE. We will be paid commission by the lender.

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OUR CUSTOMER FEEDBACK

At Town & Country Mortgages our priority is always to provide quality advice and service to our customers.
We strive to ask all our customers to provide feedback and below are extracts from questionnaires completed by our customers in 2014.

The Town & Country mortgage advisor was very helpful and explained the points I was unsure of and looked for the best mortgage that suited our circumstances.  I would recommend their services to anyone else looking.

Mr Manuel July 21, 2017