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A fixed-rate mortgage locks in the rate of interest for a set period, often between two, five, or 10 years. Learn more about partnership content and the way we make our money. If you took it out on an interest-only basis, you’d find yourself paying £200,146 in interest and would still owe £200,000 capital at the finish. For instance, when you had a mortgage of £200,000 at 5% over 20 years, the total curiosity could be around £116,876 if you took out the mortgage on a compensation foundation.
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