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What are the basic types of mortgage?

April 26, 2017BASIC mortgage types

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What are the basic types of mortgage?

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There are two basic types of UK mortgage based on how you repay the loan – a repayment mortgage and an interest-only mortgage, although you can have a combination of the two. With a repayment mortgage your monthly repayments repay the capital and the interest. With an interest-only mortgage your monthly repayments just pay the interest, and you will have to have other means of repaying the capital at the end of the mortgage, for example with some form of savings or investment plan.