Mortgage Knowledge Base
The vast majority of mortgage types are either repayment or interest-only. But there is a third lesser known method, the “part-and-part” mortgage. Part and part mortgages are a combination of a repayment mortgage and an interest only mortgage.
You pay off a portion of your mortgage as you go, but not all of it. There will still be some money left to repay when the mortgage is finished.
When applying for a mortgage you will ask the lender to split the loan into 2 separate parts:
- The repayment part
- The interest-only part
There’s no definitive way to how these are set up or proportioned. It will be down to what suits you best, along with the lender’s agreement.
How do part repayment and part interest only mortgages work?
You will find more useful information in our article: “What are the different mortgage repayment methods?“
