Hello, I am a social anthropologist doing a research on household debt in Croatia. The country had a lot of problems with FX (namely Swiss franc-indexed) loans as well as loans with variable interest rate loans and many aspects of these products remain controversial and subject to discussion. One interesting issue that keeps coming up in this context is the issue of mortgage-style amortization, also known as amortization with equal payments - simply, the kind of repayment where you as a debtor make the same monthly payment during the entire repayment period (assuming the interest rate is fixed) but the payments initially include a larger share of the total interest and a smaller share of the total principal and this composition continuously changes to the exact opposite, so that the final payment is almost all principal and a little interest. Now, this turned out to be a problem with the Swiss franc loans as the (variable) interest rates on these loans as well as the Swiss franc-Croatian kuna FX have been growing in the same time, which in interaction with mortgage-style amortization meant that debtors in the early stages of repayment of their loans kept up paying a lot of interest (the value of which was constantly growing due to the higher interest rates being charged on the principal which was itself growing to the FX change) and very little interest for a long time. Basically the combination of these three elements - variable interest rates, mortgage-style amortization, and the indexation of the principal to the Swiss franc - proved to be a kind of trap in which debtors found themselves, paying the bank much more than was justified and expected. I hope that this is clear up to now, I am not an economist or finance professional so this might not be absolutely precise or parsimonious and I would appreciate if somebody could correct any mistakes I might have made. NOW I AM GETTING TO MY ACTUAL QUESTION. A claim has come up in some of the interviews I made that mortgage-style amortization is illegal in Western Europe and/or Northern America and is only being used in Eastern European countries such as Croatia where regulation of the banking industry is less stringent and banks generally get away with more. From what I have read, however, it seems that mortgage-style amortization is very far from being illegal in the US at least and to the contrary is widely used there. Anyhow, could you briefly comment if you know about any jurisdictions in which this kind of amortization is illegal, or to the contrary if you are positive that it is actually legal in your country? I am especially interested in the situation in Western Europe, Northern America, Australia and New Zealand but information about other regions and countries is also most welcome. Thank you in advance!