Annuity Mortgage

Also known as Repayment or Capital and Interest.  Each month you pay off part of the loan plus the outstanding interest.

Repayments in the early years of the mortgage are mainly comprised of interest while the capital amount of the loan being repaid is much lower.

As the loan amount outstanding reduces so too does the interest part of each monthly repayment.

The loan is fully repaid by the end of the agreed term.