Financial Services > Mortgages > Repayment Mortgages


With this type of mortgage the lender provides you with sufficient money to allow you to purchase the building in question. You agree to repay that debt by monthly instalments over a given period together with interest on the outstanding balance each month.

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The lender registers the debt against the property as a charge, which simply means that when the building is sold the debt has to be cleared in full before any of the proceeds are given to you.

This type of mortgage carries the least degree of risk because you know that if you make the repayments recommended by the lender, the debt will be extinguished within the agreed timescale. At the beginning of the mortgage most of the monthly payments are simply paying interest on the outstanding debt, but as the mortgage draws to a close the majority of the payments are of capital rather than interest.

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If the mortgaged property is a house which will be occupied by others in addition to you, it is advisable to buy life assurance to repay the debt in the event of your death. This is even true of critical illness cover and you may also wish to consider income replacement insurance in the event of accident, sickness or redundancy.

Corrigans will be please to explain the merits of these various forms of security.