Ways to Repay your Mortgage

Whatever type of mortgage you choose, you will need to make monthly repayments to the Society. You can repay the amount borrowed in three main ways, which are:

Capital and Interest Repayment

This is commonly known as a ‘repayment mortgage’. Each month in addition to interest, your monthly payment will include an amount that repays the capital gradually over the agreedloan period. In the early years of the loan the payment is mostly interest, but as the loan is gradually repaid, the interest element reduces and an increasing proportion of the monthly repayment is used to repay the capital.


Each month you pay the interest-only, with the capital being repaid at an agreed time in the future. You must have a plan in place to repay the amout borrowed. This must be reviewed on a regular basis to make sure that it’s on track to cover the mortgage balance. You should consider taking independent fi nancial advice on your repayment plan. It is your responsibility to make arrangements to pay off the loan when the mortgage ends. If you don’t, you could lose your home.

Part Repayment and Part Interest-Only

Another option is a combination of both repayment methods, with your mortgage split into capital and interest repayment and interest-only parts. Mixed Repayment/Interest-Only mortgages will be considered by the Society subject to policy criteria.


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