Trying to understand my mortgage statement

Stealthy61

I have been looking at my online mortgage statement from Nationwide and using Locoblades fantastic spreadsheet to work out how overpayments will shorten the mortgage term and amount paid.

One thing I cannot understand from my mortgage statement is how I am paying the capital so fast. I took out the mortgage in March 2005 and so have 21 yrs 6 mths left to go.

At the start of the year the mortgage was £78,036 with 22 yrs 2 mths left.

In March of this year we changed products, but stayed with Nationwide, and paid off £21,000 lump sum in the process.

With this in mind I ran the calculator as £57,000 (although it would have been a tiny bit less than this) from March 2008 til end of term. By that calculation our mortgage should now be £56,202 but on the online statement it is down to £55,469!

I cannot understand how I could have paid off an additional £700 than the calculator suggests or even how I effectively reduced the capital by £1500 over such a short time when I should still be in a mostly interest phase of the mortgage.

Did the £21,000 payoff in March throw things a little giving me a boost on repayment payoffs for the year? I am not complaining of course but don't see how my capital has shrunk as rapidly as it has.

My total payments over the 7 months has been £2,584.60 at £368.10 per month with a rate of 5.44% so how has 60% of this come off the sum? My payment in March had come out at the old amount before I payed of the £21,000 so that might account for a £150 or so but what about the rest. I am already down to the amount the calculator suggests I will not reach until next March without any overpayments!

Confused.

getmore4less

Well if you have £78k at the begining of the year and changed in March with a £21k lump sum you need to start with less than £57k you have 2/3 payments to take into account, thats £300-£450(ish). So try with £56550.

The other thing is when is the monthly interest added and when are your payments that could account for another £370 if there is some interest still to add.

Stealthy61

getmore4less wrote: »

Well if you have £78k at the begining of the year and changed in March with a £21k lump sum you need to start with less than £57k you have 2/3 payments to take into account, thats £300-£450(ish). So try with £56550.

The other thing is when is the monthly interest added and when are your payments that could account for another £370 if there is some interest still to add.

I didn't consider the monthy interest that still might need to go on. I have no idea when this gets added, over the course of the month maybe?

I guess with that and starting my calculations a little lower than £57k the two figures will be a lot closer.

Many thanks