Repayment Mortgage
A repayment mortgage guarantees that your mortgage will be repaid at the end of the agreed term provided you make all the repayments on time and inline with the lenders rate.
With a repayment mortgage the monthly payment is made up of part capital, part interest. In the first few years the monthly repayment will consist of mainly interest, but as the term progresses the interest element will decrease and the capital part increase with the result that in the latter stages of the mortgage the monthly repayments will consist largely of capital.
