The 'Repayment' option calculates the total monthly payment for a straight repayment mortgage, including both interest and payment towards the capital loan amount. This reduces the amount owed on the capital, month by month. The 'Interest only' option calculates the amount of interest payment only.
Anyone opting for an interest-only mortgage, such as linked to an endowment, Individual Savings Account (ISA) or pension savings policy, will need to add the cost of the monthly premiums of the policy to the interest figure above. On maturity the savings policy is intended to pay off the capital loan.
Please note that this mortgage calculator is for illustration purposes only and in no way constitutes an offer or guarantee of advance.
When looking into a mortgage's repayments and its affordability you should consider other expenses such as life assurance, accident sickness and unemployment cover, household insurance and any other regular outgoings you may have. You should also consider how increases in interest rates would affect your ability to meet your mortgage payments.
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