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Life Insurance

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Paying your mortgage

You can choose to pay your mortgage back in the following ways ;
Repayment (Also called capital and interest) ;
You pay both the outstanding capital and the interest you owe on the loan each month.
Interest-only ;
You pay the interest charges on your loan only so an investment or savings plan must be taken out alongside the mortgage to repay the loan. Endowment mortgages were very popular in the '80s and '90s but some of them didn't perform well and people were left with 'shortfalls' and had to repay their loan another way.
You can also repay using a combination of the two methods above.

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