maxsteam - thanks kindly for this advice.

Often mortgage companies will say, for example, that they want you to pay off £5k of capital plus 5.3% in interest over a year so they would take 5.3% of the balance at the start of the year (5.3% of £90k is £4770), add on the £5k capital and then divide £9770 by 12 to get the monthly payments. The balance at the start of the next year would be £85k. Doing the calculation like this isn't a proper apportionment of the interest but it is the easiest way to explain and it is the way that some lenders work.

Hi

When you pay a repayment mortgage at say "5.3%" what exactly is it you are paying for... 5.3% of what?
for example, if you have a £90,000 repayment mortgage. how can you work out your potential monthly payments for that for say a 4yr fixed?

thanks