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Glossary

Repayment Mortgage

A loan where the capital borrowed is gradually repaid during the whole term of the loan. The monthly payments that the borrower makes are divided into part interest and part capital so that if payments have be kept up, at the end of the loan term the whole amount borrowed will have been repaid.

Because the monthly payments are for both capital and interest, it is important when comparing the monthly cost of a repayment mortgage with those of an Interest only mortgage, to add the money that you would need to put aside as savings to the monthly interest payments for the interest only loan.

UK Financials Ltd is not a lender and do not lend any money. We provide lenders information only service to the consumer who are looking for a loan.

Think Carefully Before Securing Other Debts Against Your Home. Your Home May Be Repossessed if You Do Not Keep Up Repayments On A Mortgage Or Other Debt Secured On It.