A repayment mortgage is paid back over a set number of years with interest. Each month you would repay part-capital and part-interest. As the mortgage reduces steadily over the years, the amount of interest payable also decreases. Therefore, over time, your monthly repayment will consist of an increasing amount of capital and a decreasing amount of interest.
Tax relief applies only to interest repayments. This means that, with a repayment mortgage, tax relief will decrease over time.
First time buyers can take out a Low Start Capital Repayment Mortgages. This mortgage
consists of interest-only repayment for an initial period, followed by a gradual increase in capital repayment. The initial lower repayments means higher payments later on.
Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.