Annuity Mortgage

An annuity mortgage is a financing structure in which the borrower makes fixed annual payments throughout the loan term. While the total payment remains constant, its composition shifts: early payments are interest-heavy, while later payments consist increasingly of principal repayment.

For commercial property investors and corporate borrowers, this provides predictability in financial planning and cash flow forecasting. The stable payment schedule simplifies investment appraisals and is widely used as a baseline for property valuation models across Northern Europe.