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What is a Repayment mortgage?

April 26, 2017mortgage repayment

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What is a Repayment mortgage?

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This is where you pay an amount of the original capital as well as the interest each month. Provided all payments are made in full, your balance will be repaid during the mortgage term.

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Part of your monthly payment covers the interest due each month and part goes towards repaying the capital. This usually means that by the end of the agreed term, the mortgage has been paid off completely as long as the monthly payments have been maintained.