Glossary - Capital Interest Mortgages

Capital and Interest Mortgages are mortgages where you pay both capital and interest.
This mortgage is better known as a repayment mortgage. The monthly repayments that are paid to the lender cover the actual money borrowed and any interest that is charged by the lender.

Example: UK Capital and Interest mortgages
Capital & Interest mortgage is also known as a repayment mortgage, your monthly repayments pay off the interest and some of the capital borrowed each month. This is the only method that ensures your mortgage is totally paid off by the end of the term – as long as you keep up your payments that is.. Many people consider these sort of mortgages to be less of a risk, and have peace of mind knowing that at the end of the full mortgage term the property is guaranteed to be paid for and really will be all theirs. There are many different types of capital and interest mortgages, fixed rate, cash back, tracker, flexible etc, you should seek out the product that suits your circumstances the best.

Useful Tip
Nearly all mortgage providers will want to be named on the propertys' UK building insurance policy and most lenders will insist on having proof of cover as a condition of the mortgage.

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