Please read the following before making any decision

Capital Repayment
With a capital repayment mortgage, the capital and interest elements of the loan are paid off with each monthly installment so that the balance reduces over time. At the end of the mortgage term the balance will be nil.

Interest Only
With an interest only mortgage the balance of the mortgage stays the same throughout the mortgage term. Interest and a premium to an investment vehicle are paid monthly. At the end of the term, the proceeds from the investment vehicle are intended to repay the mortgage. The amount will depend on the performance of the investment vehicle. If you choose an interest only mortgage you will be responsible for ensuring that you have sufficient funds available to repay your mortgage at the end of the term.

Fixed rate mortgage
A mortgage where the interest rate payment is fixed for a specific time. It then normally reverts back to a variable rate.

Capped Rate Mortgage
A loan where a maximum rate of interest is set at the start of the mortgage. During the capped rate period the interest rate can fall below the capped rate but will never rise above it.

Discount Mortgage
A discount offered by mortgage lenders to borrowers, reducing monthly mortgage repayments often for the first two or three years of the loan period.

Variable Interest Rate
Rate of interest payment that fluctuates over time with general interest rates.

Your home may be repossessed if you do not keep up repayments on your mortgage