More and more people these days are opting to split their mortgage, holding a portion as an interest only mortgage and the remainder as a capital repayment mortgage. After all the publicity about poor performing endowment policies, some people chose to cover their policy by taking out part of their mortgage on a repayment basis. This guarantees that a portion of the capital owed will be paid back.

As each annual statement for your endowment policy arrives, you can check the performance to see if there is a projected shortfall. If this looks to be the case, a repayment mortgage can be taken out to cover that shortfall. This can then be increased if necessary during the term of your mortgage to ensure that the loan will be paid back in full on the correct date.

Splitting your mortgage in this way gives you the opportunity to limit your exposure to stock market fluctuations, whilst being able to make money through a good performing investment vehicle.

If you split your mortgage by taking out two different mortgage products at the same time, you may have to pay an arrangement fee on both. You may also have two different offer periods which would not run out at the same time, perhaps leaving you with redemption penalties on one portion or higher interest charges on the other portion.

Other areas to look in to: mortgage payment, mortgage calculator, payment calculator.