How much interest and how much of house is getting paid per year?

CharleneUK

Hello there.

Can anyone tell me the formula, or direct me to a site where I can find out how much of the house price you pay off per year, and how much interest from the mortgage you pay per year? I can't find this anywhere around, and it's quite hard to search as I don't really know how to word it!

Thanks in advance.

JulieHK

If you receive a mortgage quote (Key Facts Document) from a lender or broker, it will have a payment schedule enclosed showing how much interest and capital are being repaid. I do not know of a website with this on.

Robert_Sterling

You should get a statement at least once each year.
With Nationwide you can see your statement on line at any time.
Your annual statement will show the amount outstanding.
You should know the interest rate you are being charged.
To get a fairly accurate estimate of the amount of Interest and the amount of capital repayment:

Work out the interest for one year on the amount out standing.

M x r M = Amount Outstanding : r = the interest rate as a percentage

---

100

Then divide by 12 to get the monthly interest

Subtract the monthly interest from the monthly payment

This will leave you with the monthly repayment of capital.

With a repayment mortgage in the early years it is mostly interest with a small capital repayment in the later years is is mostly repayment with a small amount of interest.

rjm2k1

http://www.whatsthecost.co.uk/mortgage.aspx

zar

If you are good enough at excel to be able to follow the instructions here then it shows exactly how much you are paying in interest and capital each month, and you can also add in overpayments. I found the instructions a little bit hard to follow in places, but its great once you've got it set up.

CharleneUK

Thank you all for the responses! You've been most helpful.

roswell

It starts out very little off mortgage mostly off interest and !!! the years dwindle away it becomes more off mortgage less interest and at the end its all off mortgage next to nothing interest.

if you have a look in the mortgage free wannabe board theres some good links and spead sheets around to show you.