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14 Apr 2024
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Repayment Mortgages Explained

What is a Repayment Mortgage?

A Repayment mortgages, (capital repayment) are a mortgage where you make monthly payments which contribute towards the total amount borrowed and the interest payable. Repayment mortgages are repaid over a specified period. Assuming you continue to make all your monthly contributions in full, the mortgage is guaranteed to be paid off in full at the end of the arranged mortgage term.

During the early years of a repayment mortgage, the majority of each monthly payment goes towards paying the interest owed. The amount paid off each year increases as the mortgage term progresses.

Repayment mortgages are the most popular form of mortgage, it is worth remembering that when budgeting your monthly payments on a repayment mortgage that the term taken at the outset can be changed in the future. Many customers are now taking repayments mortgages over 30 of even 35 years to keep their monthly repayments low in the initial years. A repayment mortgage term can be changed simply by contacting your mortgage lender in the future as and when you feel you can afford to increase your monthly repayment mortgage payments.It is important to remember that your mortgage lender may charge a small fee to change the term of your repayment mortgage.

Advantages and Disadvantages of Repayment mortgages


  • Guaranteed to pay off your mortgage in full by the end of the repayment term, provided that you make all the required monthly mortgage repayments.
  • You are less likely to suffer from negative equity because your mortgage balance will be reducing month on month.
  • Assuming your property has not dropped in value, as the capital repaid increases you will see an increase in the level of equity in your property. Consequently, when you remortgage or move home you may find it easier to obtain a mortgage.



  • Because very little of the amount borrowed is paid off in the early years of the mortgage, if you were to move again in those early years it is likely that you would need to take out a new 20/25 year repayment mortgage, in order to make monthly repayment amounts manageable. i.e. the period for paying off your debt could be extended.

Discounted Mortgage Repayment Protection Insurance

On mortgage protection insurance cover, critical illness insurance cover and permanent health insurance cover Go Direct rebate a minimum 50% of the initial commission that the provider would have paid to us back into your policy reducing the cost of your monthly insurance premiums. Get an instant repayment mortgage life insurance protection quote today from Go Direct.

Do you want fee free Repayment mortgage advice?

For UK Repayment Mortgage or remortgage advise please feel free to contact us for independent mortgage advice from a professional mortgage advisor.

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We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £349


Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.

Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £349

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Repayment Mortgages Explained by godirect.co.uk - Find Out What is a Repayment Mortgage