What is it?

With a combined or split mortgage a proportion of your mortgage will be treated as repayment and a proportion as interest-only. As with a plain interest-only mortgage you will need to make separate arrangements to repay the capital sum element.

What does it offer?

Like a full interest-only mortgage a combination offers the same advantage of lower monthly payments than a repayment mortgage.

When is it worth considering?

If you've already got some kind of investment scheme arranged before you take out your mortgage this is an option worth considering. You can use your existing investment to reduce the cost of your mortgage.

What should I be aware of?

The way the interest-only and repayment elements are proportioned will determine the extent to which your combination mortgage shares the same pros and cons as a straight interest-only or repayment mortgage.