Mortgage repayment guide
There are two main ways to repay your mortgage. The first is repayment, where you pay a slice of the capital, plus interest. The idea is that if you keep up all your mortgage repayments, by the end of the term you will repay all the capital and the property will be yours.
The second option is interest-only when you pay just the interest each month. Because you are not repaying any of the capital you will still owe this at the end of the mortgage term. You therefore need some method of paying this off so you must set up a separate investment vehicle to generate a lump sum to enable you to do so.
A third option is a combination of repayment and interest-only.