While you have a mortgage amount that needs to be repaid, there are two main ways that you should look for.

• Repayment mortgage
• Interest only mortgage

It will completely depend on your personal situation whether which option you choose for repaying the mortgage.

Repayment mortgage

This is also called interest mortgage or capital mortgage. In this situation, the mortgage repayments will pay off capital and the interest that is charged on the loan. In case you are making payments on time, you will be able to pay the entire mortgage on time and as scheduled.

Interest only mortgage

As the name suggests, in this kind of repayment of mortgage, only the interest amount that is incurring on the loan will be paid. If you are paying this amount, at the end of it all, you will just have to make payment of the amount that was initially borrowed. This can be repaid using personal pension or investment.

Which one suits me?

Whether interest mortgage suits you or the interest only mortgage suits you depends on certain factors and these include:

• Your personal situation
• Your lifestyle
• Your preferences
• Value of estate that you own
• Amount of investment that you can afford
• Amount borrowed
• Your method of repaying the mortgage

How to decide?

Which method of repaying the mortgage is suitable for you is not a decision that can be made overnight without thinking. Most often, it is even better that you should hire a specialist that can help you in finding out these details and helping you choose the best possible method of repaying the mortgage.