Repayment Methods

Remortgage types - Fresh Start (...) >> Repayment Methods

There are several different methods to repay your remortgage - and hundreds of deals to choose from. With a whole of market choice, Fresh Start Finance can help you find the best repayment mortgage to suit you. Even if you have a bad credit history (CCJs, bankruptcy, arrears or defaults) there are remortgage deals available. We don’t charge a fee for our service - we just aim to find the best remortgage deal available. Read on to find out more about remortgage repayment methods.

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What kinds of remortgage repayment methods are there?

There are four main ways to repay your remortgage. Capital and interest / repayment remortgages and interest only remortgages are the two most popular types of agreement. You can also find investment backed, and part and part deals.

Which remortgage repayment method is right for you?

When deciding which repayment method is right for you, you need to consider how much you want to pay each month and how quickly you want to pay off your remortgage. The options are:

Repayment remortgage. This is the most popular method of repayment. Your monthly repayment pays off the interest owed and a part of the initial capital borrowed.
Interest only remortgage. With these you only pay off the interest owed each month, so you can put your money into other investments. You will need to pay off the entire mortgage at the end of the agreed term.
Investment backed. This is very similar to an interest-only remortgage, except that you agree to invest any money saved in a policy such as an equity plan etc.
Part and part. You can combine both interest only and repayment mortgages, usually for a set period each for the duration of the mortgage.