There are three different ways you can repay your mortgage: repayment, interest-only, or a combination of the two. PAD Financial is a specialist whole of market mortgage brokerage and we can advice you on which option will be best for your current situation.

Remember if you choose a repayment mortgage, you pay back the capital and the interest together. But with an interest-only mortgage, you initially only pay back the interest on a monthly basis and repay the capital at the end of the mortgage term.

If you would like to know how PAD Financial can help you, please contact us now.

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Which repayment type is for you!

This is where you repay a proportion the amount you have borrowed, plus the interest owed, each month.  Over the term of the mortgage, you will reduce the balance to zero and is the only way to ensure the mortgage is repaid at the end of the term.

Rather than repay any of the capital each month, you only repay the interest each month.  However, because of this, you need to ensure that you have a suitable repayment vehicle in place (and this has to be your decision, PAD Financial cannot advise on the suitability of any repayment vehicle).  Examples of repayment vehicles could include the following:

    • Endowment
    • Pension
    • ISA
    • Sale of Property