... move house, the mortgage is paid off with the proceeds of the old property and a new mortgage is taken out on the new property. This means that if you move every five years the debts will no significantly decrease through that time because the five year will be spent primarily paying off interest rather than capital. - It is easier to change the period over which you pay repay loan. If you do not get into which you repay your loan. If you do get into financial difficulties extending the period can make substantial savings in your monthly payments. - If you come into a lump sum of money that can be use to pay off all or part of the debt outstanding. It is relatively easy to arrange this a capital repayment mortgage. Disadvantages of capital repayment mortgage - A disadvantage of this method of repaying mortgage is that, it does ...

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