New Payment Amount for Mortgage

SkulBlaker

Hi there, this is my first post on this site and I am looking for some help and advice regarding my current mortgage.

I am currently moving from a 5.85% 3 year fixed rate mortgage onto a 2.5% tracker due to the fixed rate running out.

There is 22 years left on my current mortgage.

I'm trying to get my head around the fact that my mortgage isn't halving due to the decreasing interest rate.

I have spoken to Nationwide and I still cant understand why my interest is being halved yet my payments aren't. Am I being daft here or is there something that I'm missing.

opinions4u

Part of your monthly payment includes paying off some of the captial - this doesn't change. Unless you are on an interest only mortgage.

[Deleted User]

Is your mortgage interest only? If this is the case I don't understand it either.

Or is it a repayment portgage? If it's repayment, you will be paying off the initial amount you borrowed + interest. in this case only the amount that you are paying in interst will be reduced, the capital repayment will not reduce

hcb42

Capital ,hopefully the amount outstanding has reduced in last three years