Part and part mortgages blend the two most common kinds of mortgage repayment options, interest only and repayment. Using an interest only mortgage you only pay off the mortgage interest amount throughout the mortgage term, and not the capital amount. Having a repayment mortgage means your regular payment consists of both the interest element and a portion of the capital, and therefore you are going to have paid off the total mortgage amount at the conclusion of the loan period (assuming all repayments made monthly were paid on time). It's possible to decide on what percentage of the loan you wish to pay back under each kind of plan.
For instance, imagine a mortgage of £250,000 where £200,000 is selected as repayment and the balance of £50,000 is interest only. During the mortgage term, monthly repayments will include the interest accumulated and the share of the mortgage that is repayment only. At the end of the mortgage term, the repayment portion will be paid off, and the interest only portion (£50,000) must be repaid.
Consequently, as with an interest-only mortgage, it is important to ensure you have a credible repayment strategy to repay this amount at the end of the term.
