Repayment

Repayment

You repay some of the capital you have borrowed + some of the interest on the loan

Your aim is to pay back the original loan amount + interest over an agreed term

This allows you to build equity over a period, and own your home

If you move before the duration of your mortgage, you can repay the original loan, take out another mortgage, or transfer the deal you have over to a new home

Geek alert!  This process is called “porting your mortgage”

Suitability:  Repayment deals are great for homebuyers looking to build equity overtime with an aim to own the property outright.