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What is a part-and-part mortgage?

A part-and-part mortgage is a mortgage that is part repayment, and part interest, similar to a repayment mortgage, but more specially, you don’t repay the loan amount in full from your monthly repayments, you decide how much loan is left to repay at the end of the mortgage term.

Just like on an interest-only mortgage you have the whole loan amount left to repay, you decide how much is left to repay at the end of the term.

You might typically get a part and part mortgage because you want lower monthly repayments than you would have on a standard repayment mortgage, but a lower amount to repay at the end of the mortgage term than you would if you went with a full interest-only mortgage.

Nuts About Money tip

Mortgage can be complicated, and there are many variations. It’s best to speak to a mortgage broker to find the right one for you.

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