Repayment Mortgages
With this type of mortgage, a person borrows a sum of money form a mortgage lender for an agreed period of time (usually 25 years).
To repay the loan, the borrower makes regular payments to the lender, typically at monthly intervals.
These repayments consist of two elements:
- a repayment of a proportion of the capital sum
- interest on the outstanding amount of the loan. The rate of interest depends on the lender's current mortgage interest rates.