Zero coupon mortgages Zero interest mortgages UK Property definition

UK Mortgage definition

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Zero coupon mortgages (or Zero interest mortgages )

Where a lender expresses the return on lending a sum as a higher amount of capital payable at the end of the mortgage term than the sum borrowed, it is called a Zero coupon mortgage (or Zero interest mortgage). In other words, instead of receiving interest the lender receives a larger capital sum.
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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