A repayment mortgage is a type of mortgage where you repay the loan (plus interest) over an agreed period of time, typically 25-30 years. It is the most popular type of repayment method.
The main advantage of a repayment mortgage is that it ensures that your debt is gradually reduced over time, so that you eventually become mortgage-free.
You should consider protecting your repayment mortgage against unexpected events such as death or illness.
The alternative method is an interest only mortgage, where the amount borrowed does not decrease over time.
It’s important to remember that a repayment mortgage isn’t the right choice for everyone. Make sure you speak to a mortgage broker before making a decision.
Our Guide to Mortgage Types explain the different ways that a mortgage can be set up.
You will find more useful information in our article: “What are the different mortgage repayment methods?“
