Part and Part Mortgages Explained

A Part and part Mortgage is basically a portion (say 50%) is on an Interest Only Basis and the remainder (the other 50%) is on a repayment basis.

Worked Example of a £100,000.00 Part & Part Mortgage

Mr Sing signed up to a 100K mortgage in the year 2010 for 20 years,, the 20 years passes very quickly and Mr Sing has not changed the deal he made with his provider in 2010. It is now 2030 and Mr Sing has had a letter from his mortgage lender saying that the £50,000 he had on interest only is about to expire and they are callling the debt in, they have told him not to worry as he has 6 months to find the £50,000 pounds.

The above is a real life situation of a Part and Part Mortgage, as you can see the interest only part is still required at the end of the term, the only benefit Mr Sing had is that his mortgage would have been cheaper than a Capital and Repayment Mortgage

A Part and Part Mortgage is much better than an Interest Only Mortgage. but is not as efficent as a Capital and Repayment Mortgage, the mortgage brokers from KPM Financial Services will formulate an action plan if you are on a Part and Part Mortgage, the aim of this plan over the longer term would be to get your Part and Part Mortgage on to a Capital And Repayment Mortgage. (we know premium will effect this)

Another name for a Part and Part Mortgage is "Part Repayment Part Interest Only Mortgage" or vice versa but again KPM will be committed to over a time frame switching you to a Capital and Repayment Mortgage.

Part and Part Mortgage Calculator

We have a repayment and interest only mortgage calculator coded into out site, go to the calculator page, to calculate you currnet payments use the repayment calculator for the capital portion of you mortgage and the interest only calculator for the interest only portion of your mortgage add the two together and this will give you the monthly payment of your mortgage. the Mortgage Calculator Part and Part is accurate and updated twice a day please remember when it comes to the interest only portion the term you chose will not effect the monhtly payment unlike the repayment portion of your mortgage