Tuesday, 14. July 2020

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Interest charges
The charges that are made on a loan by a bank or building society which are calculated as a percentage of the amount that has been borrowed/outstanding.


Interest only mortgage
This is a mortgage where the monthly payments to the lender porely cover interest only. A savings pplan is often set up by a borrower which is designed to pay the amount of the loan at the end of the mortgage term subject to the savings plan performance (see endowment mortgage). If you choose an interest only mortgage, you are responsible for ensuring that you have sufficient funds available to repay your mortgage at the end of the agreed term.
 

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