Repayment mortgage
How does it work?
You borrow a lump sum over a fixed period of time (usually 25 years, but it can be less). You pay the interest and some of the capital on a monthly basis to the lender.
Advantages
The only way you can be 100% certain the loan will be repaid (provided you keep up with the repayments.)
Disadvantages
Only a small amount of capital is paid off in the early years.
