Part repayment mortgage

Johnny_Hamster

Hi
Hope someine can help .

I took out a mortgage Dec 2002 for £63,000 over 13 years of which £35,000 was interest only, leaving £28,000 repayment. The monthly payment was £377 while fixed at 4.69% for three years. How come I still owe around £59,000 after three years ? I would have expected to have paid off more. Is the monthly repayment weighted somehow towards the latter end of the term?

thanks

Johnny Hamster

brannyrhino_2

The short answer is Yes You may very little capital at the beginning of the mortgage and more interest increasing to more capital and less interest at the end of the mortgage.

You may find something to help on this link

http://www.mortgagesexposed.com/Book_Contents/spreadsheet_summary.htm

Joe_Bloggs

The figures are correct. It appears that you will always owe [strike]£36000[/strike] £35000 and it seems you have paid £4925 over three years to borrow this money. By making repayments on the £28000 you have paid £5039 off the principle and £3600 in interest. So what you owe on the original £28000 is now just £22960.
J_B.
Edited £35000 for £36000 mistake.

Totals After three years.
Total capital repaid £5039 Total Interest £8525. Balance £57960.
An alternative for could have been £63000 @4.69% term 273 months.
Total capital repaid £5027 Total Interest £8528. Balance £57972
Monthly payment are £376.