Mortgage Repayment
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What is a Capital Repayment Mortgage?
A capital repayment mortgage is a home loan where your payments are split between repaying the amount you borrowed, which is the capital, and covering the interest charges on the loan.
What is an Interest-only Mortgage?
An interest-only mortgage is also a home loan, but during the interest-only period, you only pay the interest. This means that each month or year's payment is calculated as a simple interest payment on the outstanding principal - the prinicipal does not get paid and therefore does not decrease.