The first figure gives the total monthly payment for a straight
repayment mortgage, including both interest and payment towards the
capital loan amount. This reduces the amount owed on the capital, month
by month.
The second figure shows the amount of interest payment only.
Anyone opting for an interest-only mortgage, such as linked
to an endowment, PEP or pension savings policy, will need to add
the cost of the monthly premiums of the policy to the interest figure
above. On
maturity the savings policy is intended to pay off the capital loan.
These figures are only a guide. We recommend
that you obtain exact figures from us before committing to any mortgage.
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