Capital and Interest Mortgage

This is one of the most common types of mortgage at the moment. The monthly repayment made by the borrower includes a repayment of interest and capital.

Initially the loan reduces slowly. 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 repayments are always made on time the mortgage is guaranteed to be paid off at the end of the term.

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