What Is A Repayment Mortgage

A Repayment Mortgage in simple terms means that once Repayments On A Mortgage have been made to the mortgage provider, one part of this payment will be the lenders interest and the other part will be capital, this capital will be deducted from the borrowers mortgage and over a specific time period the capital will reduce untill eventually the mortgage has been repaid in full. Get some Independent Mortgage Advice from KPM Financial Services about a Capital Repayment Mortgage (the pros and the cons)

When it come to Repayment Mortgage Calculations and what the monthly mortgage payment will be for the borrower this will be much higher than an interets only mortgage as interest and capital will be coming off the debt. A major benfit of been on a repayment mortgage is that the debt reduces over time and the equity in the property build up as the debt is reducing. KPM Financial Services are in a position were we have exclusive deals with specific mortgage providers which will ensure your Repayment Mortgage Rates will reflect your current financial status.

Capital Repayment Mortgages or Mortgage Capital Repayment they are both the same, are designed for the risk edverse i.e. people who want the security that once their mortgage term has terminated there will own the property i.e. ownership of the property is referred to as an unencumberred proeprty, a borrower on an interest only mortgage would be risk adverse and would not be in this position when the mortgage term has expired.

When assesing Mortgage Affordability the borrowers will need to have more income than those who have opted for an interest only mortgage due to the fact the monthly repayments are going to be higher when a lenders assessment of Mortgage Affordability.

Repayment Mortgage Calculator

KPM Financial Services have a Mortgage Calculator which will let you Work Our Mortgage Repayments, this caluculator is on our mortgage calculator page and is very accurate, remeber with a repayment mortgage calculator the term and interest will effcet the monthly payments. The Repayment Mortgage Calculation is there to help you demonstarte you own assesment of affordability i.e. what you can and cannot afford