Capital reduction UK Mortgage definition

UK Mortgage definition

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Capital reduction

When a borrower makes a lump sum payment to reduce the capital amount owed on a mortgage, a Capital reduction occurs. It is commonly called a part redemption. Some institutions specify minimum amounts they will consider as capital reductions.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

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