Types Of Mortgages

Repayment Mortgages - This is when a mortgage consists of repaying the mortgage amount borrowed in monthly repayments, you may also be required to pay each month any interest that may have occurred. an advantage of taking out a repayment mortgage is that once then end of the mortgage term has ended all the debt has been paid. A disadvantage to a repayment mortgage is that for the first couple of years at least, the majority of repayments will be paying back interest.

Interest-only mortgages -  An interest-only mortgage is a mortgage in which the borrower only pays interest on the principle balance. These are popular with people who are perhaps going to buy a second home for the purpose of renting out the property.

Offset Mortgage -  the main feature of an offset mortgage you are able reduce the interest by offsetting a credit balance. Towards the end of the mortgage who ever you have borrowed the money from may place a restriction on the lending limit to ensure capital repayment.

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