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Mortgage Glossary

Part and Part Mortgage

A mortgage that is split into two portions — one on a repayment basis and one on an interest-only basis.

A part and part mortgage combines elements of both repayment and interest-only mortgages. A portion of the loan is set up on a repayment basis (where monthly payments reduce the capital), and the remaining portion is on an interest-only basis (where you only pay the interest each month).

This arrangement offers a middle ground: your monthly payments are lower than a full repayment mortgage but higher than full interest-only. The repayment portion guarantees that at least part of the debt will be cleared by the end of the term, while the interest-only portion will still need to be repaid using a separate repayment strategy.

Part and part mortgages can be useful for borrowers who want to keep monthly costs manageable while still making progress on repaying the capital. Lenders will still require a credible repayment strategy for the interest-only portion, such as savings, investments, or the sale of the property.

Example

You borrow £250,000 over 25 years at 4.5%. You put £150,000 on repayment and £100,000 on interest-only. The repayment portion costs £834 per month and the interest-only portion costs £375 per month, totalling £1,209. On a full repayment basis, you would pay £1,389. At the end of 25 years, the £150,000 is fully repaid, but you still owe £100,000 from the interest-only portion.

Key Points

  • Splits the mortgage between repayment and interest-only portions
  • Monthly payments are lower than full repayment but higher than full interest-only
  • The repayment portion is cleared by the end of the term
  • A repayment strategy is needed for the interest-only portion
  • The split can usually be adjusted during the mortgage term

Related Terms

Repayment Mortgage
A mortgage where your monthly payments cover both the interest and a portion of the capital, so the loan is fully repaid by the end of the term.
Interest Only Mortgage
A mortgage where your monthly payments only cover the interest, leaving the full loan amount to be repaid at the end of the term.
Repayment Vehicle
A savings, investment, or other financial plan used to build up a fund that will repay an interest-only mortgage at the end of its term.
Remortgage
The process of switching your existing mortgage to a new deal, either with your current lender or a different one, without moving home.

Learn More

Interest Only vs Repayment Mortgage: Which is Right for You?
A detailed comparison of interest only and repayment mortgages. Compare monthly costs, total cost, pros and cons, and worked examples to decide which suits you.
The Complete Guide to Interest Only Mortgages
Everything you need to know about interest only mortgages in the UK. How they work, who qualifies, repayment vehicles, pros and cons, and current lending criteria.
Switching from Interest Only to Repayment: Your Options
How to switch from an interest only mortgage to repayment. Understand the process, impact on monthly payments, part and part options, and what to do if you cannot afford full repayment.

Useful Tools

Mortgage Calculator

Frequently Asked Questions

Can I choose how much is repayment and how much is interest-only?

Yes, within the lender's criteria. Most lenders allow you to choose the split, though they will require you to demonstrate a repayment strategy for the interest-only portion. Some lenders set a minimum repayment element.

Can I change the split during the mortgage term?

Many lenders allow you to adjust the split, for example moving more onto repayment as your income increases. This usually requires a request to the lender rather than a full remortgage.

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