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Capital is a sum of money. Capital can describe a lump sum investment or a lump sum loan. The capital is the amount you have invested or borrowed as distinct from any return you may get from an investment or any interest you may be required to pay.
It is used throughout the term of a mortgage to describe the amount outstanding that you owe, excluding costs and interest.
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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.