when does your mortgage really start to come down?

skater_kat

I'm not currently in a postion to overpay as I am getting SMI due to being out of work. Once I get a good job again I will be ready to start over payments. (hopefully soon!!!!!)

I bought in 2008 for 113k. had a good deposit saved so my mortgage was for 86k. I have been making the regular payments and doing a little extra overpaying when i have been in work (we are talking about 1k since 2008; not much).

I checked my balance today and it stands at 76.5k. It's a bit depressing to have been paying the mortgage for four years (on a good tracker rate) and it has only reduced by 10k. when do you start to see more of a reduction in the total owing? i understand that the first few years of the term don't make much of a dent on the total balance... when does this start to change?

can someone put a postive spin on this for me?!

dannymccann

Use this calculator (beware, it makes for depressing reading for the first half of your entire term!!!):

http://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator

On my 38 years to go product, if I continue to overpay by £50 a month (which I have been doing for the last year now) I get the following result from the calculator:

Overpaying would save you
£31,339 in interest alone,
and mean you pay it off in full
8 years and 4 months earlier.

Gives you a good kick up the !!!!!

Peelerfart

It is often (and best) referred to as "A marathon, not a sprint".

Pay what you can when you can and I promise you it makes a difference

originalmiscellany

The first five years or so are you just paying off interest on your mortgage and very little capital. Once you've made inroads, the becomes increasingly large as a chunk to overpay until you end with almost all capital being paid off every month and only a small amount of interest.
That's why (thanks to dannym's figures) overpaying from the word go is so effective.