Part and Part Mortgage

What is a Part and Part Mortgage?

This type of mortgage combines two types of mortgages whereby a proportion of the loan is treated as an interest only mortgage and whats left is a repayment mortgage. So therefore you will repay the loan by using these two methods

Part and Part Mortgages

A Part and Part Mortgage can work out to be more expensive than a straight forward repayment mortgage but will be cheaper than an interest only mortgage as more of the debt remains unpaid during the term and will collect interest. Also payments can be more expensive than for a comparable interest only mortgage.

Any Good?

This type of mortgage is a good idea if you already have an endownment, ISA or pension plan prior to taking out this type of mortgage and want to use it to help reduce the additional cost.

Other Advice?

If you are interested in a Part and Part Mortgage, its important to speak to a specialist as this type of mortgage is more complicated than the more popular ones and he will help you prepare a good investment plan and advise you what would be the best percentage of the loan to pay off under each type of plan, which is usually about 80% repayment and 20% interest.

Last Tips?

If you wish in time you can change to a full repayment or full interest only mortgage or change the amount of the portions on each part.