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Mortgage repayment methods

The Capital Repayment method

The interest-only method
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The Capital Repayment method

A repayment mortgage works in the same way as most types of loans. You make a regular monthly payment to the lender, and the payment is made up from capital (i.e. repaying the money you've borrowed) and interest. So, providing you keep up the appropriate payments, at the end of the term you will have repaid the loan in full.

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