Re: First year of repayment mortgage, WTF!

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?

You can't find anywhere it says this? Doesn't it tell you what the
interest rate is? From that you could easily work out how much you
would be paying each month if you were paying interest only. As a
good first approximation, if you multiplied the difference, between
that and what you're actually paying each month, by 12 you'd get what
you're paying off during the year.

Let me pluck some figures out of the air which I guess to be in
the right ball-park.

Say you borrowed £96k at 5%, which at interest-only would be £4800
a year, or £400 a month. A repayment over 25 years for the same
parameters would cost £6811 a year or £568 a month. £6811-£4800
is about £2k. See?

.

Relevant Pages

  • Re: First year of repayment mortgage, WTF!
    ... then the difference is how much capital you've paid off. ... It will also say what your balance was at the start of the year. ... Generally the balance *is* all capital, if you've been paying all the ... It is the amount outstanding, which *is* partly capital and partly ...
    (uk.finance)
  • Re: Man Rules
    ... for over 40 years now that women should be paid the same as men, ... message is that women should have an equal shot at PAYING? ... Thats all well and good, but its also quite irrelevent to my point. ... Since women are the far more " bitter about minor unfairness " sex, ...
    (talk.origins)
  • Ralf still being paid $20 million a year!
    ... Rubens is getting paid $12 million! ... Jacks $3.6 million - I thought he was paying for his drive. ... Schumacher is still the highest paid race driver in F1's pitlane. ... Fernando Alonso. ...
    (rec.autos.sport.f1)
  • Re: Ralf still being paid $20 million a year!
    ... Rubens is getting paid $12 million! ... Jacks $3.6 million - I thought he was paying for his drive. ... Schumacher is still the highest paid race driver in F1's pitlane. ... Fernando Alonso. ...
    (rec.autos.sport.f1)
  • Re: canadian usage
    ... the note may be paid off at any time by paying the balance ... > I think in some states prepayment penalties in mortgages are flat-out ...
    (sci.lang)