Repayment mortgages
A repayment mortgage is a loan secured against the value of a property which is paid back in instalments.
Unlike an interest-only mortgage, with a repayment mortgage each payment covers both the interest being charged and a portion of the original debt. As a result the monthly payments will be larger than for an equivalent interest-only mortgage.
This means that when the fixed term is up, the mortgage debt is fully paid off and the house belongs entirely to householder.
Repayment mortgages come in many different forms including lifetime trackers, fixed rate deals, and discounted rate deals.
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