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How to repay your mortgage?

You have two options

Interest only mortgage or
Repayment mortgage

What are the advantages/disadvantages? Which is the
best way to repay your mortgage?

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Lets consider the differences, firstly with a traditional
repayment mortgage you pay back the debt slowly and gradually,
usually over a period of 25 years. each month part of the payment
goes towards the interest and part goes towards repaying back some
of the loan itself.For this reason repayment mortgages are sometimes called
capital and interest mortgages because you are paying back interest
and capital at the same time.
The interest only mortgage takes the opposite approach. Instead of
paying the money back gradually you pay it all back at the end of the mortgage
term, this might seem like an alarming way of approaching the biggest
purchase you will ever make in your life but it is a tried and tested method.
You pay interest to your lender for the duration of the mortgage, you put
regular savings into an investment or savings plan, which is designed to
pay off your loan at end of term.

Whichever method you choose will be determined by your attitude towards risk
and your personal circumstances.

A repayment mortgage is a surefire way to pay back the mortgage loan, so long as
you keep up monthly repayments.
However each time you move to another property you will have to
pay back the loan on your old house and take out another one
on your new home.
With an interest only mortgage, when you move to your new home your
repayment vehicle is not affected. You just have to make sure your investment
will still cover the outstanding loan at end of term - the risk however
is you are relying on the growth of an investment which is not guaranteed.

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YOUR HOME IS AR RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. ALL LOANS ARE SUBJECT TO STATUS. SECURED LOANS ARE SECURED ON PROPERTY