With this method the monthly mortgage repayments pay off both the initial loan amount and the interest that is charged upon it. At the end of the loan term the entire debt will be repaid. Also known as: Repayment Mortgage.
This is when your monthly payments go to pay off the outstanding mortgage in addition to the interest on the mortgage. At the end of the term you will have no more to pay. Also called a repayment mortgage.
This is when part of your monthly payment contributes to paying off the outstanding mortgage in addition to paying the interest on the mortgage. The payments are structured so that at the end of the term, your mortgage will have been completely paid off. For this reason this type of mortgage is also called a Repayment Mortgage.
This is one of the most usual types of mortgage. The monthly repayment made by the borrower includes a repayment of capital borrowed and an amount for the interest charged. At the beginning of the mortgage most of the payment is used to cover the interest and only a small amount is paid towards reducing the mortgage. Over the term of the mortgage more and more of the monthly payment is comprised of paying back the capital borrowed. As long as the monthly payments are always made on time the mortgage is guaranteed to be paid off at the end of the term. This type of loan is often known as a repayment loan.
Your monthly payments are partly to pay the interest on the amount you borrowed, and partly to repay the amount you borrowed. At the end of the mortgage, the capital and the interest is all completely repaid. It is also known as a repayment mortgage.
Also known as a Repayment mortgage, this is the traditional method of repaying a mortgage loan. The repayments which you make go partly towards reducing the mortgage debt, and partly towards paying the lender's interest charges. The mortgage debt is guaranteed to be repaid at the end of the term providing you have made all your monthly repayments when due. This is one of the main attractions of this type of mortgage. When taking out a Capital and Interest mortgage it is crucial that appropriate life cover is in place to protect the mortgage debt, otherwise your home could be at risk. It is your responsibility to ensure that adequate life cover is in place. Lenders can often introduce you to a company that offers life insurance products if required.
