Capital paid off in first two years of mortgage

kingstreet

I just looked on the schedule of a Nationwide case I did recently over 25 years and the end of year two balance was 94.5% of the original loan, so 5.5% was repaid in the first two years.

ffor99

Ah yes, that makes sense! Thanks for all you're replies, guys.

I now know what my aim for the next two years will be. Just hope I manage to stick to the plan!

ffor99

Hi Kingstreet,

Yes, the calculator on this website says that after 2 years I will still be owing £106k which is around about 95% of the initial £113k loan.

R_P_W

You can always overpay if product allows it

getmore4less

kingstreet wrote: »

I just looked on the schedule of a Nationwide case I did recently over 25 years and the end of year two balance was 94.5% of the original loan, so 5.5% was repaid in the first two years.

The % paid off in the first 2 years changes with the interest rate

for 25years

rate left
0% 92.0%
1% 92.9%
3% 94.5%
5% 95.8%
10% 98.0%


using
http://www.whatsthecost.com/mortgage.aspx

69% £112500 + £51000 = 163500
60% £98100 + £65400 = 163500

£112500 @ 2.99% 25 years is £533pm

after 2 years owe £106,260.

To get down to £98100 needs a payment of £863 an extra £330pm.

or save £340pm (less any interest earned).

this would be the same payment if you made the term just over 13years.

Thrugelmir

ffor99 wrote: »

Hi Kingstreet,

Yes, the calculator on this website says that after 2 years I will still be owing £106k which is around about 95% of the initial £113k loan.

Also hope that property prices don't take a dive in your locality in the next two years. As this would affect your LTV calculations.