when does your mortgage really start to come down?

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?!

Replies

  • 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 !!!!!
  • PeelerfartPeelerfart Forumite
    2.2K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    Forumite
    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
    Space available for rent
  • originalmiscellanyoriginalmiscellany Forumite
    1.7K Posts
    Part of the Furniture 1,000 Posts Combo Breaker Mortgage-free Glee!
    Forumite
    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.
    Feb 2012 - onwards MF achieved
    September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
    April 2018 down to 28.00 months vs 30.04 months at normal payment.
    Predicted mortgage clearing 03/2047 - now looking at 02/2045

    Aims: 1) To pay off mortgage within 20 years - 2037
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