Repayment Mortgages
With a repayment mortgage, your monthly payments to the lender go towards reducing the amount that you owe as well as repaying the interest they charge. That means that each month you’re paying off a small part of your mortgage.
The advantages
It’s a clear approach – you can see your mortgage getting smaller and provided you maintain the payments, you also have the certainty that your mortgage will be repaid at the end of the term.