Amortisation

Full definition

Amortisation is the process by which a repayment mortgage pays off both interest and capital over the term. Early payments are mostly interest; later payments are mostly capital. The monthly payment stays constant on a standard repayment mortgage, but the split shifts as the balance reduces.

How this affects you

Whether amortisation is relevant to your mortgage depends on your circumstances — lender, product, deposit, employment, credit profile, and stage of application. An FCA-authorised mortgage broker will tell you exactly where it applies to your case.