What is a Repayment (Capital & Interest) mortgage?
A repayment mortgage repays interest and capital simultaneously throughout the agreed term. In the earlier years you pay mostly interest and very little capital, then as the loan matures you progressively start to repay more capital so the outstanding mortgage balance reduces over the term of the mortgage.
Related Questions
- What is the difference between an Interest-Only Mortgage and a Repayment Mortgage paying capital and interest?
- Is my mortgage payment less with an interest only mortgage vrs a Capital and Interest Repayment Mortgage ?
- Why would I want an ‘Interest Only’ mortgage as opposed to a Repayment (Capital and Interest) mortgage?
