MORTGAGE COMPARISON
Interest-only vs repayment
Interest-only monthly payment
£938
- Repayment mortgage payment
- £1,390
- Interest-only total interest
- £281,250
- Repayment total interest
- £166,874
- Balance left on interest-only
- £250,000
SOURCES & REVIEW
Checked against official guidance
Last checked 14 July 2026 · Rule version GB-2026.27.1
MoneyHelper: Repayment methods ↗COMMON QUESTIONS
Frequently asked questions
Why is interest-only cheaper monthly?
The payment covers interest but does not normally reduce the capital balance.
Do I need a repayment plan?
Lenders normally require a credible strategy to repay the capital at the end.