Definition
On a repayment mortgage, each payment covers interest and repays some capital. The interest portion is usually larger near the start because the outstanding balance is higher; the capital portion generally grows as the balance falls, assuming the rate and payment structure do not change.
Practical example
Two mortgages with the same balance and rate can repay capital at different speeds if their remaining terms differ.
Why it matters
Understanding amortisation helps explain why term length changes both monthly payments and total interest.
Mortgage repayment calculatorSource and review
Reviewed 16 July 2026. Product criteria and rules can change.
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