IVA : What Is A Capital And Repayment Mortgage?

A "Capital and Repayment" mortgage is a mortgage where the mortgagee makes monthly repayments which include part of the capital borrowed as well as interest due, and cannot be included in an Individual Voluntary Arrangement (IVA).

This is the opposite of an "Interest Only" mortgage which is where monthly payments are made up of interest payments only which also cannot be included in anIndividual Voluntary Arrangement (IVA). A capital and repayment mortgage runs for a set term. After that term the mortgage will be paid off in full, unlike in an interest only mortgage where the whole amount borrowed will still be left to pay.

Switching from a capital and repayment mortgage to an interest only mortgage can sometimes be a way of increasing a monthly contributions in an Individual Voluntary Arrangement (IVA).

If you would like to know more about Individual Voluntary Arrangements (IVAs) call 0800 088 7503 to speak to one of our trained Individual Voluntary Arrangement advisers. Alternatively visit myIVA-Adviser.com and download one of our free guides designed to inform you about Individual Voluntary Arrangements (IVAs).

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