What types of mortgage are there?

January 17, 2020
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The most common mortgages that you’ll come across in Ireland are fixed rate and variable rate mortgages. Both of these are known as a repayment mortgage.


With a repayment mortgage, your lender will figure out how much you need to pay each month in order to clear the loan by its end date. This figure will include interest payments on the loan as well as the repayment of the original capital.

But there are also interest-only mortgages, where your monthly repayments only include the interest on your loan. You will then have to pay back the original capital using a pension or endowment policy, or by selling the property.

Another term used is an ‘offset mortgage’, which combines a variable interest rate mortgage with a current account. However, interest-only and offset mortgages are unusual in today’s market.


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