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Capital & Interest or Interest-Only?

You should always select a Capital & Interest (Repayment) mortgage unless: --

  • You have an additional investment vehicle such as an endowment, ISA or pension that will definitely pay off the loan amount at the end of the term.

  • You are comfortable with the high risk view that house prices will rise sufficiently and will definitely sell the property before the end of the term

  • You are certain your income will increase in the near future and can afford to switch to a Capital & Interest mortgage

  • It is a Buy-to-Let mortgage

 

  





 

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Your home may be repossessed if you do not keep up repayments on your mortgage.


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