| With a repayment
mortgage each monthly payment that you make will help to pay off both the interest
and the actual capital borrowed, guaranteeing that the residential or buy to let property will be yours
at the end of the mortgage term so long as payments are kept up as agreed. This
is perhaps the more common type of mortgage that is available, as it offers the
borrower more security than an interest
only mortgage.
Monthly payments with the repayment mortgage UK will consist of two parts;
one which will repay the capital borrowed and another which will cover the interest
that has accrued on the amount borrowed. In contrast to an interest only mortgage, with the UK repayment mortgage it is
likely that your mortgage lender will insist that you have some sort of life insurance
policy to protect them should you happen to die before your mortgage is fully
repaid.
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