Finding the lowest mortgage interest rate is important when you search for the best repayment mortgage, but you should also think about:

  • The type of repayment mortgage you want

  • How much you need to borrow

  • How long you need to repay your mortgage

Decide on a mortgage type

There are two main types of repayment mortgage:

  • Interest only mortgage:Your repayments only pay the interest on the mortgage and do not reduce the total balance you owe.

  • Repayment mortgage: Your monthly repayments go towards paying both the monthly interest and the mortgage amount itself, reducing the total amount you owe.

Once you have decided on a type, decide if you want a fixed or variable interest rate:

  1. 1.

    Fixed rate: You pay the same amount at a fixed interest rate each month for a certain number of years e.g. repayments are fixed at 2% for three years

  2. 2.

    Variable rate: Your repayment amount can change each month. Whether the amount goes up or down depends on any changes to the Bank of England base rate.

Here is more information on the different types of mortgages.

Work out how much you need

To find the right repayment mortgage for you, work out the amount you need to borrow.

Your repayment mortgage will need to match your loan to value (LTV), which is how much you owe compared to the value of the property.

For example, for a house worth 250,000, a mortgage of 150,000 equals an LTV of 60%

This comparison shows you the LTV offered by UK mortgage providers.

Calculate what you can afford

Next work out how much you can afford to repay each month. To calculate this:

  1. Work out much comes into your account e.g. salary and pensions

  2. Add up how much goes out of your account e.g. fuel, holidays, gym membership

  3. Take away your total outgoings from your total income

Here is how to work out if you can afford a mortgage.

Choose a mortgage term

Once you know how much you can afford, consider the mortgage term you need.

A shorter mortgage term means you may have higher monthly repayments. While a longer term can mean lower monthly repayments, but you will pay more overall in interest.

For example, a mortgage of 100,000 at an interest rate of 5% over 25 years costs 585 a month and 175,377 overall. Over 35 years it is 505 a month and 211,969 in total.

Get advice

Finally, before you apply you could choose to get impartial advice from an FCA registered independent financial adviser.

Although they charge for their services, they can help you choose the best repayment mortgage for your circumstances.

Once you've made a decision, you can start your application:

  • Online

  • Over the phone

  • In branch

Repayment Mortgage FAQs

Q

Will my credit record be checked?

A

Yes, mortgage providers will check your credit history when you apply.

Q

Can I get a joint repayment mortgage?

A

Yes, many providers offer joint repayment mortgages.

Q

Can I get a repayment mortgage through a broker?

A

Yes, you can find a mortgage specialist here.

Q

Can I switch to a repayment mortgage?

A

Yes, you can switch between different mortgage types, here is how you can get a mortgage.

About our mortgage comparison

Q

Who do we include in this comparison?

A

We include mortgages from every lender in the UK. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.