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The first figure gives the total monthly payment for a straight repayment mortgage, including both interest and payment towards the capital loan amount. This reduces the amount owed on the capital, month by month. The second figure shows the amount of interest payment only.
Anyone opting for an interest-only mortgage, such as linked to an endowment, ISA or pension savings policy, will need to add the cost of the monthly premiums of the policy to the interest figure above. On maturity the savings policy is intended to pay off the capital loan
These figures are only a guide. We recommend that you obtain exact figures from a specific lender before committing to any mortgage.
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