FAQS

With:
•    Repayment mortgage → you repay capital + interest monthly
•    Interest-only mortgage → you only pay interest during the term
At the end of an interest-only mortgage, you still owe the original loan amount.
Lenders usually require a repayment plan such as:
•    Investments
•    Pension lump sums
•    Property sale
Interest-only mortgages are harder to qualify for today.
 

Typical terms:
•    25 years (traditional)
•    30–40 years increasingly common
Longer term:
•    Lower monthly payments
•    More total interest overall
Shorter term:
•    Higher monthly payments
•    Less interest paid overall
Many first-time buyers now use longer terms for affordability.
 

UK lenders check whether you could still afford repayments if interest rates rise.
They assess:
•    Income
•    Essential spending
•    Existing debt
•    Future rate increases
This is part of the affordability checks regulated by the Financial Conduct Authority.