intrest on morgages

johnjo666

can you tell me how much of the dept you would pay off in the first second and third years on a repayment morgage for £295000.00 at 3.99% this would be a fixed rate for 3 years. this would be of great intrest to us to help us choose our next morgage many thanks john

Sunshine12

Hi
Its quite complicated to work it out accurately but from my calculations (based on 25 year term) you would be paying off around £7000 capital in year one (slightly more in year 2 and so on). This is only rough however as obviously when your capital reduces, the interest payable on that capital reduces. Most mortgages are calculated on a daily rate and Im not enough of a mathematician to work it out to that level of accuracy!! Might be someone else on here who can though. (Would be good for you to get a 2nd opinion on my figures too as I would hate to think Id somehow calculated it wrongly for you)