As mortgage brokers we work with clients to ensure they get the best mortgage advice possible. We offer what is known as whole of market mortgage sourcing, which, unlike a bank or building society who would only offer their own mortgage products, enables our mortgage clients to gain access to the whole mortgage market with one point of contact. A capital repayment mortgage is what most people think of when they consider applying for a mortgage. It simply means that a portion of your monthly payments will go towards repaying the capital each month and a portion will go towards repaying the interest, so at the end of the mortgage term the loan should be completely repaid. Interest only mortgages are sometimes used for people investing in buy to let properties or certain commercial ventures. An interest only mortgage will allow you to repay the interest on the loan without repaying the capital, meaning the monthly payments are kept to a minimum. At the end of the mortgage term the mortgage balance becomes due. For buy to let properties this is often done by selling the property. The sale of the property would hopefully repay the mortgage in full and return any increase in property value over the years to the investor.
