A reminder of the repayment scheme you've arranged with us, which will be one of three types:
Capital repayment mortgage - each month, you repay some of the original funds borrowed, plus the monthly interest on the outstanding balance.
Interest-only mortgage - with your interest-only mortgage, your regular monthly mortgage payments only cover the interest charged on the money you've borrowed.
Part interest-only and part capital repayment mortgage - your mortgage is a mix of these two types of scheme. For example, you may be repaying the money you borrowed plus interest on half your mortgage, while paying just the interest on the other half.
An important note if you have an interest-only mortgage
With your interest-only mortgage your regular monthly mortgage payments only cover the interest charged on the amountyou borrowed. So, unless you're making overpayments, you'll still have the total amount you borrowed left to repay when your mortgage comes to an end. By having an effective repayment plan in place now, you can be more confident that your finances are on course to repay your mortgage balance.
You should check the performance of any plans you have in place to pay us back, such as savings plans or endowment policies.