Query re cpaital on repayment mortgages

bundance

Hi

I originally borrowed £52+k in the year 2000, to buy my flat.
It was a repayment mortgage.
In 2006, I took out a ten year fixed rate mortgage at 5.18%, and pay £311.20 per month.

I am not asking people to do any calculations.
I am just wondering, when 2016 comes and my fix rate deal comes to an end, as the interest rate of my morgage is 5.18%, does this mean that I will have paid off less of the capital, than, if I had stuck to a variable rate mortgage, given that the variable rate is much lower?

i.e. as more of my monthly payment is interest, than the variable.

I would appreciate the answer in idiots guide terms, because I have always found this subject difficult to understand.

I assumed that my monthly payments would be a lot less in 2016 (depending on what the interest rate at the time is, obv)

Many thanks for your help

TrickyDicky101

Had you been on a variable rate mortgage for the same length of time, and had the variable rate been lower than 5.18% AND had you maintained the same monthly payments of £311.20 then yes, you would have paid off more had you been on the variable rate.

kingstreet

If you take out a 25 year mortgage and you pay the correct amount on time each month, you will repay it by the end of year 25.

If the rate changes, provided you meet the increased payments, you'll still pay it back by the end of year 25.

If the interest rate falls and your payment falls to match that, the mortgage will still be repaid by the end of year 25.

The only way you won't pay it back is if you should pay more than you actually are, just as if you pay more than you should, you'll pay it back quicker.

bundance

Hi Guys

Thanks for your help.