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Payment shock

The mortgage definition for Payment shock:

Payment shocks are when the discount period ends and the monthly repayments jump by a large amount to match the Standard Variable Rate. You must be sure that you can budget for this in your monthly expenses.

Similar Matches

Additional principal payment

Additional principal payment
Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan.

Annualised payment scheme

Annualised payment scheme
Although the borrower pays interest at a variable rate, which can change from month to month, the lender charges a set amount of interest each month and then adjusts the balance at the end of the year.

Balloon payment

Balloon payment
The final lump sum payment due at the end of a balloon mortgage.

Further Suggestions

Early repayment period
Late payment
Monthly repayment
Mortgage payment protection insurance (MPPI)
Payment default
Payment holiday

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