The maximum mortgage term is usually 35 years. Mortgages backed by a pension, PEP or ISA can have a term of up to a 40 years. Mortgages cannot run beyond your 85th birthday, but please remember it is your responsibility to ensure that you have adequate arrangements in place to continue making your monthly repayments after your retirement.

Capital and interest mortgages

Sometimes called repayment mortgages your monthly payments go towards paying off both the interest and the original amount you borrowed (the capital). Keep up-to-date with your mortgage payments and you're certain to clear your mortgage at the end of its agreed term. We believe this provides the best, lowest risk option for most borrowers.

Interest-only or investment backed mortgages

With this option you only pay mortgage interest to us each month. The loan is repaid at the end of the mortgage term from the proceeds of an investment, such as an endowment, pension, PEP or ISA. Premiums for the investment are paid to an investment or insurance company.

Remember, that the value of any investment is subject to market performance and can go down as well as up, so there is no guarantee that the mortgage will be repaid in full at the end of the term.

With an interest-only mortgage you are responsible for ensuring that there are adequate arrangements in place to repay your mortgage. If you don't, serious financial consequences could result in the loss of your home. If you are thinking of changing your repayment method, or want to borrow additional money on an interest only mortgage, we suggest that you contact one of our Norwich Union Financial Consultants.

Early repayment of a mortgage, early surrender of an investment or changes in personal circumstances can have adverse financial consequences, depending on the type of mortgage or investment you have.

In most cases, an endowment policy provides automatic life cover. However, we strongly advise you to consider separate life cover if you are saving into an ISA or intend to use a PEP to repay your mortgage.

We may require details of any endowment, ISA, pension policy or PEP being used to pay off the mortgage.

We believe that a capital and interest mortgage provides the best, lowest risk option for most borrowers.

Pension-linked mortgages

These may be suitable for the self-employed or those not in a company pension scheme. They are similar to an endowment mortgage, but with the monthly premium paid towards a personal pension plan. Premiums are invested into a tax-free fund. When you retire, part of the fund will be used to repay the mortgage, whilst the rest may provide a regular pension for you. Repayment of the mortgage depends on the growth in the value of your policy.

You should consider your retirement needs and repayment of the mortgage when you decide on the monthly premiums. If the pension policy does not provide life cover, this should be arranged separately.

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Coventry Building Society is authorised and regulated by the Financial Services Authority (FSA reference no: 150892 www.fsa.gov.uk). The Society is a member of the Building Societies Association. We introduce only to the Norwich Union Marketing Group, members of which are authorised and regulated by the Financial Services Authority. This site is intended for UK residents only. Coventry Building Society. Registered Office: Economic House, PO Box 9, High Street, Coventry CV1 5QN.

Our telephone advisors are available: 8am to 8pm - Monday to Friday, 9am to 5pm - Saturday, 10am to 4pm - Sunday (Opening hours are subject to change on bank holidays). Calls cost 5p per minute, maximum for BT customers. Non-BT customers should contact their service provider as costs may vary. To maintain a quality service, we may monitor or record phone calls. Information correct as at 1st January 2008.