halifax mortgage question...

james3333

i bought my first house with my partner 2 and half years ago.
we borrowed £87,000.
mortgage is with halifax on a full repayment, capped for 3 years.
we pay £500 per month.
we had an annual mortgage statment though a few months ago and it was £88,000
MORE THAN WE BORROWED!!!??????
when will this start to come down? and why exactly is it more than we borrowed?
the lady at the halifax just said, "dont worry, this is how we calculate interest, etc"
what does this all mean?

thanks.

james.

clarew

yep, unfortunately the interest in the first few years exceeds the payments! Sad but true, we are now 3 years into our mortgage and have paid off 15k (current payments of 1k a month), usually it is around years 10-15 you notice it swings in your favour more. i'm sure someone on here can refer you to a chart showing where it kicks in.

however to help combat the massive profit the banks get out of our mortgage interests, check out the mortgage pig thread above in the stickys, and see if you have the ability to overpay slightly each month, which will help to knock down the interest quicker. (halifax usually let you do 10% of the balance per year-but check your terms and conditions first. even 10-£20 a month can help)

clarew

ps-forgot to mention did you have fees added to the morgage intially that may have increased the amount you originally borrowed?

Joe_Bloggs

The figure they sent you may have been a redemption figure that may include early repayment charges. There are lots of Halifax borrowers on this forum so expect more answers if you put the word Halifax in your post title.
J_B.
Their new deals must have been thought up by their rivals.

james3333

oh...... just spoke to halifax, i can overpay 10% per year
can anyone advise how i do this online?
open a new account and pay a direct debit into the mortgage account evry month?
or somthing?
any halifax mortgage customers done this, so they can talk me through it step by step?

grade15

u don't really need to open a new account..
just phone halifax and ask them what ur sort code and account no. for your mortagage is..
then go to ur bank account and transfer to this mortagage account..! presto :dance:
u can press then "thanks button" any time

james3333

CHEERS GRADE 15!
:money:

clarew

the 1st time i just took my mortgage statement into the branch and paid it from that. then i got a receipt, and i just take that in, and ask to pay x amount of the capital on this. Seems fairly easy to do.

(not sure about the online way, as i don't bank with them.)

I pay in between £10-80 month, and is nice to see now on this years statement, all the additional payments i've made!

Good luck with it all. do check out the mortgage pig thread-its inspiring!

james3333

well, i have sorted my 'overpay'
iam buzzing from the amount of cash and time it takes of....
iam going to 'overpay' £30 per month
iam buzzing from getting into all this investments, savings etc.
ITS GREAT!!!!!!!!!:T :j :beer:

clarew

good for you! It can become addictive!:rotfl:

james3333

would be nice to be able, at the touch of a button, put in any amount i want each month
i.e one month (feeling flush £80) and the next month (just £30)
might enquire about that when the standing order kicks off!