Re: First year of repayment mortgage, WTF!

On 14 Sep 2006 00:59:44 -0700, public.mark.m@xxxxxxxxxxxxxx wrote:


Peter Saxton wrote:
On 13 Sep 2006 07:40:10 -0700, public.mark.m@xxxxxxxxxxxxxx wrote:


Simon Finnigan wrote:
public.mark.m@xxxxxxxxxxxxxx wrote:
public.mark.m@xxxxxxxxxxxxxx wrote:
We got our first year mortgage statement to find paying @£560 quid a
month only paid off around 2k of the balance!. almost all of it went
on the interest!. I thought it would have been 50/50 with capital
and interest and cant find anywhere where it mentions this in my
mortgage documents. Can I expect this ratio to change?

Did you bother to do any reading on the subject before you got the
mortgage? Perhaps got a quote for an interest only mortgage? I`d
strongly suggest you do read up on things before making such a big
decision, rather than assuming anything.

As to your actual question - yes the ratio will change, of courise
it will. This coming year you`ll be paying interest on a smaller sum
of money, and will therefore pay more off the capital this year than
last. The following year will see you paying interest on an even
smaller capital sum, and so on until you`ve paid the mortgage off.

<TOP POSTING CORRECTED>

We used a FA who got a good fee, and assumed he would have explained
it all.


As the saying goes, assume makes an ass out of u and me. £560 a month is a
LOT of money to pay out, I know that I did a lot of reading round and
research before I got my mortgage, so I knew myself what was going on. Do
you trust everyone else you deal with on a daily basis implicitly? I
certainly don`t, and I`d never trust everything a FA said unless I could
back it up with my own, independent research.

I`d say learn from this experience - the next time you make a mistake like
this by signing without understanding what is going on, it could be the
equivilent of an endowment mortgage, or a mis-sold pension.

Yeah your're correct, next time I go for surgery I'll make sure I know
more than the surgeon, after all I can't trust anyone.

With your attitude I'd suggest you get used having a lot of problems
in your life.

--
Peter Saxton from London
peter@xxxxxxxxxxxxxxxxx

My point is I paid for the services of a professional, I had asked
advice online before going to the IFA and most people said I would be
better talking to a IFA!, I admit it's my own fault and at the time of
taking the mortgage we were desperate to move due to neighbour from
hell, also had a default 4 years previous hence FN. Im hoping by next
year after paying mortgage for two year my credit rating will be back
to normal and I will research the market my self and choose a good
flexible mortgage.

I am in the position to over pay now but not when I took the mortgage
out, and the mortgage docs say its a light adverse and cant be over
paid. Also its 8%,4%,1% of balance on first three years to repay the
mortgage in full. By thsi time next year I will be into the third year
and will pay 1% to get out of it.

Thanks for all the advice sorry about being pain

Go to something like www.fool.co.uk and then you'll know more by the
time you are looking around.

--
Peter Saxton from London
peter@xxxxxxxxxxxxxxxxx
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