Find out more about the different types of mortgages on offer and ways you can pay back your loan early - something which could save you thousands of pounds in interest payments.
With a repayment mortgage you pay interest on the amount you borrowed and this is included in your monthly instalments. Make all your repayments and by the end of the mortgage term you'll have paid it all off.
With an interest-only mortgage, you'll have to make separate plans to pay off the sum you borrowed. This is normally done through an investment such as an endowment, ISA, or pension.
You can combine both repayment types on one mortgage. For example, you could use existing investment plans to cover the interest-only element and have the remainder on a repayment basis.
It doesn't take much to wipe years off your mortgage – and save thousands of pounds in interest payments. This is because every time you repay some of what you owe, you are charged less interest, so more of your future payments go towards repaying the outstanding debt.
