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Methods of Repaying a mortgage.
Member rating: No Rating | Words: | Submitted: Mon Dec 22 2003
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Methods of Repaying a mortgage 1) Capital Repayment Mortgage: Capital repayment or annuity mortgage used to be the traditional way of repaying a loan but they now account for less than one in every five new mortgages. They are available from all building societies, most banks, some centralised or wholesale lenders and partially none of the insurance companies. Monthly repayments are made up of the interest you pay on the outstanding loan and repayment of the repayment of the loan itself. In the early years most of the repayments consist of interest but as the years go by you pay off more aid more of the capital. Throughout the period of the loan, the capital part of your repayment will increase while interest decrease. Provided the interest rate does not change the period of the loan. In practice this does not happen as interest rates go up and down, but as...
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