Capital Repayment and Interest Only Calculator
How Does Capital Repayment Work?
The mortgage payment is made up of interest and
capitial repayments. If payments are made in full
and on time then the mortgage balance reaches zero
at the end of the mortgage term. When you press
calculate a graph will display the reducing balance
over the term of the mortgage.
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How Does Interest Only Work?
There are no capital repayments made to
the lender, so the mortgage balance remains
the same throughout the mortgage term. A
repayment plan is normally required by the
lender to settle the mortgage in full at the
end of the mortgage term.
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