How much is our mortgage capital??

Katuska

Dear All,

My question may seem silly to many but being a first time home owner this is totally new for me.
We are selling our house and I am trying to work out how much we paid off our mortgage.
It seems that in the last 31 months (since we bought our house) we paid £9300 (around £300/month) in form of a capital and interest mortgage to Halifax. If it says that the rate is at 6.9%; then how much is the capital that we already paid off? Do I just calculate the remaining 93.1% on the £9300 and that's what we already paid off ie our capital???

Also, once we sell our house and we don't want to buy a new one (we are moving to Australia) do we get all our capital back or do we need to pay some sort of tax on it?

Any help is appreciated.

littlesos

Not knowing what size of mortgage you have makes it a bit tricky, so I've made some assumptions......
I've assumed that the rate of 6.9% has been constant throughout, and that you borrowed 45K over 25 years.

This would give you a monthly payment of about £315 per month. Over 31 months you would have paid off a little over £1,900 off the capital. I've assumed you haven't made any overpayments, and that 6.9% was the rate at the start of the mortgage.

Seems a bit low, so maybe siomeone else could check my figures.

Katuska

Hi littlesos,

Thanks a lot for your calculations.
I have found some mortgage papers and made some calculations myself and I came pretty much to the same figures. How naive was I to think that if we paid over 9 grand in mortgage payments we would have 8 grand capital??!!!
Very frustrating as it seems almost all of the morgage payments go to cover interest.
Our initial starting figure was £44,000 and now we hardly paid any of it off.
Awful.

Thanks a lot once more!!

JoeK_3

Katuska wrote: »

Hi littlesos,

Thanks a lot for your calculations.
I have found some mortgage papers and made some calculations myself and I came pretty much to the same figures. How naive was I to think that if we paid over 9 grand in mortgage payments we would have 8 grand capital??!!!
Very frustrating as it seems almost all of the morgage payments go to cover interest.
Our initial starting figure was £44,000 and now we hardly paid any of it off.
Awful.

Thanks a lot once more!!

Annual Rest Calculation
£44,000 @ 6.9% 25 years capital repayment = £311.81 pm
£44,000 @ 6.9% 25 years interest only payment = £253.00 pm

Capital paid off = £58.81pm x 12 = £705.72 pa

JoeK

littlesos

JoeK wrote: »

Annual Rest Calculation
£44,000 @ 6.9% 25 years capital repayment = £311.81 pm
£44,000 @ 6.9% 25 years interest only payment = £253.00 pm

Capital paid off = £58.81pm x 12 = £705.72 pa

JoeK

So I wasn't that far out then! But it's only 58.81 in the first month, every month after it's slightly more so total for 31 months is £1,866.71

The_Bear_6

The capital amount on your capital & interest mortgage is very much a plateau. More interest paid at the start up to more capital at the end.

Scott

The reason the first month of a mortgage often has less interest is that unless you make payments on the same date as you draw down, it usually isn't a full month (i.e. draw down on the 3rd, 1st payment on the 22nd or something along those lines).