There are three repayment methods available:
Capital & Interest – Your monthly payments will include repayment of the capital (loan amount borrowed) and interest. Your mortgage will reduce over time and will be repaid in full at the end of the term.
Interest Only – Your monthly payments will only pay the interest charges on your loan, and not any of the capital borrowed. Your outstanding mortgage balance will not reduce over the mortgage term and will still need to be repaid off in full at the end of your mortgage term.
Part Interest Only/ Part Repayment – This is a combination of capital repayment and interest only. The capital repayment element will be paid off by the end of the term. However, the interest-only element will still need to be repaid off in full at the end of the mortgage term.