Repayment Types

Repayment Mortgage

The monthly repayment you make to the lender each month consists of the interest you owe plus the capital. If you keep up all the repayments on your mortgage, you are guaranteed to have paid off the mortgage at the end of the term. This method is the safest way to repay the mortgage.

Interest-Only Mortgage

The payment you make to the mortgage lender each month comprises just the interest you owe for that month. Therefore you are not paying off any of the capital you owe. When considering this type of repayment, you should also consider making arrangements into a investment vehicle, savings account, pension or other investment. The aim is that the investment will then generate sufficient funds to pay off the capital sum you still owe at the end of the mortgage term. However, there is no guarantee of this, so any interest-only mortgage carries an element of risk.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

A BROKER FEE OF £298 WILL BE CHARGED ON APPLICATION. THIS FEE WILL BE FULLY REFUNDED IF THE APPLICATION IS DECLINED.


Ignite Financial Services Limited is registered in England and Wales, company registration number 6910151. The registered address The White House, Mill Road, Goring on Thames, Reading, Berks RG8 9DD. Ignite Financial Services Limited is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.