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Compare the market for Mortgages

Mortgages come in different types and variations (different ways to pay the interest, for example). There are just 2 main types of mortgage, 'Repayment' and 'Interest' though these come a number of Variations. Keep it simple and start by leaning the basics. Tip: when choosing a morgage, write down all the mortgages available to you, then elimate each one you don't like to help you find the the mortgage you like the most.

Repayment motgages (also known as capital mortgages) are the traditional motgages where the house you are buying is certain to be yours at the end of the term, as long as the loan has been repaid.

The debt from a Repayment morgage is divided into two types:

• Capital repayments (which pay back the loan)
• Interest payments (what you are being charged for the loan)

Monthly payments are a bit of capital and bit of interest, typically the first years are mostly Interest payments which over time lead more towards capital payments.