Interest only vs repayment mortgages

Interest-only vs repayment mortgages

  • The pros and cons of interest-only mortgages
  • How a repayment mortgage can be cheaper long-term
  • How to get the best mortgage interest rate

What's in this guide

Interest-only mortgages explained

Interest-only mortgage payments can be lower than repayment mortgages, but you may need a big deposit. Find out how interest-only mortgages work

Repayment mortgages explained

With a repayment mortgage you're paying off both the mortgage interest and the capital. We explain how interest-only mortgages work

Interest only mortgage repayment shortfalls: what to do

If you have an interest-only mortgage, make sure you have arrangements in place to repay the loan when your term finishes.

Which? works for you