New to Mortgages - simplified advice needed

gemstars

Hi all, this is my first post in the mortgage free wannabe forum.

I have a £68,000 fixed rate repayment mortgage which started in August last year.

Is there a way I can calculate how much of my monthly payment is going towards paying off the mortgage and how much is going to interest?

I'm asking as I am allowed to pay off an additional 10% each year without any penalty. I would like to work out when is the earliest I could be mortage free if I did this.

I hope this makes sense.

SimbaSimon

gemstars wrote: »

Hi all, this is my first post in the mortgage free wannabe forum.

I have a £68,000 fixed rate repayment mortgage which started in August last year.

Is there a way I can calculate how much of my monthly payment is going towards paying off the mortgage and how much is going to interest?

I'm asking as I am allowed to pay off an additional 10% each year without any penalty. I would like to work out when is the earliest I could be mortage free if I did this.

I hope this makes sense.

Do you have a recent mortgage statement or are you able to view it online? This should give you the amount you've paid and the amount of interest that has been charged. Minus the amount of interest charge against the amount you've paid and thats how much capital has been paid off.

alfiesmum

http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx

Pop all your details in here, and click the 'show amortisation at the bottom, it'll give you a complete chart, showing what is paid to waht re interst/capital repayment. Or if you post more details on here, someone will be able to tell you. Interest rate, term of mortgage.

You'll need to check with your provider what it's 10% of. Some will say 10% of your original loan, some is 10% of the balance in any given year, some is 10% of the monthly payment.

dimbo61

You can also type in your mortgage details on "whatsthecost" and get a rundown on how much interest and capital you pay each month!
Give your lender a call and ask about the 10% overpayment
Does this mean 10% of the outstanding balance at the start of the year OR 10% extra each month of your mortgage payment !