Repayment or Capital and Interest Mortgage

What are repayment or capital and interest mortgages?

This is the simplest type of mortgage. The payments made to the lender every month repay both the capital and the interest from the loan. Provided the monthly payments are paid when they fall due, then they are guaranteed to pay off the loan by the end of the mortgage term.

At the beginning of the mortgage term, the monthly payments consist mainly of interest. The amount of capital owed gradually reduces during the term and the interest part of each monthly payment decreases, while the capital element increases.

The lender calculates your monthly repayments depending on the amount borrowed, how long for, the interest rate & how the rate you have chosen is set.

Mortgage advice based on you circumstances

We offer a comprehensive range of mortgage products from across the market. Our unbiased advice will be based on your circumstances, matching you to a product and lender that is suited to your needs. Please call us on 01675 446500 and ask for an appointment with one of our advisers.

A fee of £395 is payable on application. We will also be paid commission (a procuration fee) from the lender.

A mortgage is a loan that is secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.