Part-and-Part Mortgages: The Half-and-Half Pizza of the Mortgage World

If you’ve ever ordered a pizza and thought, “I want pepperoni… but I also want veggie supreme…” — congratulations, you’re already mentally prepared for a part-and-part mortgage.

This lesser-known mortgage option gives you a slice of repayment and a slice of interest-only — ideal if you want to keep monthly payments manageable, but still chip away at your loan over time.

So, what exactly is a part-and-part mortgage? Why would anyone choose it? And are there strings (or extra cheese) attached? Let’s dig in.

What is a Part-and-Part Mortgage?

A part-and-part mortgage (also known as part-repayment, part-interest-only) is exactly what it says on the tin:

• One part of your loan is repayment (you’re paying off both interest and capital)

• The other part is interest-only (you’re just paying the interest, and the capital sits there like a grumpy dog waiting to be let out while there's a squirrel in the garden)

At the end of the term, the repayment part is gone (yay!), but the interest-only bit still needs repaying. So you’ll need a plan to settle that final chunk — selling assets, using savings, or possibly cashing in that vintage Beanie Baby collection. (OK, maybe not that.)

Lender Criteria: Are You Eligible for Half-and-Half Happiness?

Lenders like part-and-part mortgages to come with a sensible plan and a borrower who isn’t just winging it. They typically want to see:

• A reliable repayment strategy for the interest-only portion. Typically this will be investments such as ISAs, pension lump sums, or background properties. Many lenders will allow sale of the mortgage property as the repayment strategy, so long as a minimum equity exists - the value of which is largely depicted by region e.g. £300k in London or £200k outside of London). Some lenders will even consider annual lump sums such as from a proven bonus towards the repayment strategy.

• A solid income — usually £50,000+ or higher depending on the lender

• A decent deposit or equity — typically 25% or more

• Clean(ish) credit history — though some specialist lenders are more flexible

• A clear understanding that this is not a “skip paying the mortgage” free pass

Pros of Part-and-Part Mortgages

1. Lower Monthly Payments than Full Repayment

Because you’re only paying interest on part of the loan, your monthly costs are less punishing than a full repayment mortgage. Your bank account breathes a little easier.

2. You're Still Paying Off Some of the Loan

Unlike interest-only mortgages, you’re not just kicking the can down the road. You’re actually reducing the debt — just not all of it.

3. Flexibility for the Financially Savvy

Perfect if you’re expecting a windfall, future bonus, or the sale of another property to clear the balance later. (Just don’t count on winning Bake Off. It’s not a solid financial strategy.)

Cons of Part-and-Part Mortgages

1. You’ll Still Owe a Chunk at the End

That interest-only portion doesn’t vanish. You need a reliable way to pay it off, or you may have to sell the house to downsize or refinance.

2. Fewer Lenders Offer Them

Not every lender is on board with part-and-part, so your choice may be more limited — especially if your credit file looks like it’s been on a rollercoaster.

3. Can Be a Bit More Complex

You’ll need to keep track of what you’re paying off and what you’re not. It’s a little more admin than your standard mortgage — and possibly a bit more explaining if your mates ask, “Wait… so you only pay some of your mortgage?”

When Would You Use a Part-and-Part Mortgage?

Scenario 1: Mr. and Mrs. “We’re Waiting on Investment Maturity”

They can afford to pay some of the loan back monthly, but they know they’ve got a sizable investment maturing in the future. So they go part-and-part and plan to clear the rest when the time comes.

Scenario 2: Landlord Larry

He’s buying a new property to live in but still owns a rental. He chooses part-and-part to lower monthly costs, knowing he’ll sell the rental in a few years to pay off the interest-only portion.

Scenario 3: Freelancer Fiona

Her income is uneven, but she expects it to grow. Part-and-part gives her breathing room now, with the option to make overpayments (and maybe even switch to full repayment later).

Final Thoughts: Should You Go Half and Half?

Part-and-part mortgages can be a smart compromise for people who don’t want the full commitment of a repayment mortgage but aren’t quite wild enough to go interest-only either.

Like pineapple on pizza, they’re not for everyone — but in the right circumstances, they’re chef’s kiss.