Annuity (repayment mortgage)

The most common type of mortgage - an Annuity known as a Repayment Mortgage is designed for people willing to take out a loan for a fixed term and pay it back in monthly installments with added interest.

Monthly repayments are calculated by your lender and based on two values: repayment of the loan itself and interest on the loan. At the begining of your mortgage term most of your repayments will cover paying off the interest only. As your loan gets smaller in size over time the interest reduces. It means that as time goes on, bigger cut of your monthly repayments cover payments of the capital.

There are two options available for you - variable or fixed rate annuity mortgage.

There is a combination of a variable interest rate mortgage with your current account called Offset Mortgage. It allowes you to use your account as usual. However you can also pay in extra amounts or lump sums wich helps you to pay off your mortgage quicker saving money in long-term.