Aspect Learning Guide
Principal & interest
Principal and interest repayments reduce the loan balance over time while also covering the interest charged.
Principal & interest explained in plain English
Principal and interest repayments reduce the loan balance over time while also covering the interest charged.
How it works
Part of each repayment covers interest and part reduces the loan balance.
Why borrowers choose it
It helps steadily reduce debt.
Cash flow
Repayments are usually higher than interest only repayments.
General information only: This guide does not take into account your personal objectives, financial situation or needs. Lending policy varies between lenders.