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Capital and Interest Mortgage
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A Capital and Interest Mortgage is one of the most usual types of mortgage . The monthly repayment made by the borrower includes a repayment of capital borrowed and an amount for the interest charged.
At the beginning of the mortgage most of the payment is used to cover the interest and only a small amount is paid towards reducing the mortgage. 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 payments of repayments are always made on time the mortgage is guaranteed to be paid off at the end of the term.See Also:
Go to Moneyextra's Mortgage Centre and Mortgage Comparison Service/ now.
Last Updated: May 2007 © Moneyextra.com
Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.