Savings mortgage

A savings mortgage is a type of mortgage where the loan is not repaid during the term.
Alongside the mortgage you build up savings in a separate account, such as a bank savings account or a savings insurance policy, into which you pay a monthly premium.

This monthly premium earns interest at the same rate as the interest you pay on the mortgage loan.
At the end of the term, usually after 30 years, the mortgage is repaid in one lump sum.

Since 2013, the tax benefits for new savings mortgages have been abolished. As a result, this type of mortgage is now rarely offered.