How do I calculate how much of my mortgage I am actually paying off?

travellady

I was just wondering if anayone knows how to work out how much of my mortgage I am actually paying off?

These are the details

Mortgage £87500
3.5% rate
10yr mortgage
£865 per month payment.

I worked it out by doing it this way but not sure if it is correct or not.

£87500 x 3.5% divide 12 months =£255 interest paid

£865 - 255 = £610 total payment off mortgage per month??


Suggestions would be grateful.

dimbo61

You are right
Check on( whats the cost )website
You would pay £103,830.16 in total with £16,330.16 interest
The interest in the first month would be £255.21 and capital repaid £610.04

travellady

Cheers... not as dumb as I thought i was! lol. Thats fab didn't realise I was paying that much capital off..

dimbo61

Is the 3.5% fixed for the 10 years ?
Can you afford and are you allowed to overpay each month/year and therefore pay alot less interest !
Good luck

travellady

dimbo61 wrote: »

Is the 3.5% fixed for the 10 years ?
Can you afford and are you allowed to overpay each month/year and therefore pay alot less interest !
Good luck

Hi Dimbo61 No it isn't fixed I'm now just going on a variable rate. I am hoping to pay an overpayment of another £500 per month to fetch the term down and more if we can afford. We are allowed to overpay on thos mortgage any amount with out penalty which is great.

dimbo61

Even at 3.5% you will struggle to get that from savings rates at the moment so carry on overpaying as much as you can for the next couple of months and if rates do start to climb look for a long term fix ( 5 /10 years) which allow overpayments (Nationwide allow £500 a month ).
GOOD LUCK

travellady

Cheers Dimbo61 Good news again we havent even made a payment yet and its dropped super!!

I thought the same to be honest overpay as much as we can for as long as we can then set to fixed if it rises.

cheers