What methods of repayment are available?
Capital repayment: Monthly payments consist of both interest and capital. The outstanding balance is gradually reduced over the term of the loan. Interest only: You only pay the interest element of the loan. At the end of the mortgage term the full amount originally borrowed will still be owed. It is possible to combine these two methods and have a part interest and part repayment mortgage. The mortgage is divided into two parts and your single monthly payment will be made up of part interest only and part capital repayment.
