UK Mortgages - Mortgage Amortisation Calculators
Mortgage Amortisation Calculator UK
What is Amortisation?
Amortisation : The process of treating as an expense and the annual amount deemed to waste away from a fixed asset, the concept is particularly applied to leases, which are acquired for a given sum for a specified term at the end of which the lease will have no value. It is customary to divide the cost of the least by the number of years of its term and treat the result as an annual charge against profit. While this method does not necessarily reflect the value of the lease at any given time, it is an equitable way of allocating the original cost between periods.
Goodwill may also be amortised the statements of Standard Accounting Practice recommend as his preferred method the writing off in the year of purchase off all purchased goodwill. The charges should be to the reserves and not to the profit and loss account. However the standard also permits the writing off of goodwill to the profit-and-loss account in regular installments over the period of its economic life. Home-grown could well, if it is in the balance sheet at all, should be similarly dealt with by one of the two methods above.
Amortising mortgage
A mortgage in which all the principal and all the interest has been repaid by the end of the mortgage agreement period. Although equal payments may be made during the term of the mortgage, the sums are divided, on a sliding scale, between the interest payments and repayments of the principle. In the yearly years most of the payments go towards the interest charges while in her later years more repayments lower the sum borrowed, until this sum is reduced to zero with the last payment payments go towards the interest of charges
This calculates your monthly repayments as well as showing you what the balance of your loan will be at the end of each month. It will also show you how much principal and how much interest you are paying with each repayment. (the calculator results will open in a new window). Please note that it may not work in some older versions of Netscape.
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