When choosing a mortgage one may be given a choice of how they want to pay it. The choice can be an interest-only mortgage or a repayment mortgage. Over payments can be made on either type of loan, but they will clearly subject to the individual terms and condition of that particular mortgage.

If your particular mortgage allows you to overpay, you may do so voluntarily, for either type of mortgage. Repayment mortgage means you contractually must pay some of the money each month in addition to interest on the amount borrowed.

If your specific mortgage allows over payments, you may also be flexible enough to use them to help fund any underpayments you make in the future, or if the case applies, it could cover a full month of payment by itself.

However it is not necessarily true to say that with a repayment mortgage you can’t get back the capital which forms part of your monthly mortgage payment. Although strictly speaking, you can’t ask for the capital you have paid off to be returned, depending on your lender, you can raise some cash by borrowing extra on your mortgage. Alternatively, if your mortgage has been going for a few years – and so a reasonable amount of capital has been repaid, you may be able to borrow back up to the value of the original mortgage.

It’s always best to check with your lender if you are unsure of  whether you can have over payments returned to you.

There are also shared ownership housing and Part ownership in London schemes available from respected property developers who offer valuable houses at affordable prices. If living in London, look for shared ownership housing in London

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