Repaying your Mortgage

Capital and Interest Mortgage
A repayment mortgage, or capital and interest as it also known, works basically the same way as most types of loan. You make regular monthly repayments to the lender; the repayment is made up of capital (repaying the amount you initially borrowed) and interest.
Provided you keep up the correct payments, at the end of your mortgage term you will have repaid the loan in full.
The longer period that you borrow over, the more overall interest that you will pay will be. This is also true of Interest Only and Split mortgage described in the next few pages.