how much is int and capital re payments?

aggypanthus

How do I know or work out how much of my mortgage payment each month is capital and how much is interest?

Sorry if its a dumb question with an obvious answer:)

kingstreet

You can work out the interest element by;-

mortgage amount x rate / 12 = monthly interest

then you deduct the answer from your normal monthly payment and the difference is the capital element.

Paully232000

https://forums.moneysavingexpert.com/discussion/1157173

or you can have a look at this thread for a brilliant excel spreadsheet which you can download and gives you that info if you put in the purchase costs etc. Gives much more info also. Brilliant piece of software

aggypanthus

Thanks folks, for promp replies, should the info be actually specifed on any of my paperwork?

I aslo need to know how to choose a new fixed BTL rate, taking fees into account. Is a bit confusing,looking at whats on offer to me.

kingstreet

What paperwork do you have that you think it should be on?

For example an annual mortgage statement would show the interest due, payment made and a decreasing balance.

You compare products by calculating the interest payable over a set period and adding to it any fees. Then you compare the difference in what you've paid off at the end of the period and add that to the cost.

aggypanthus

I have rate of 5.49
17 yrs left
cost £368.13 monthly (so that doesnt tell me the split cost )
Balance £49,053 Property value £7500

This rate ends Oct to SVR of 4.99 - £355.13 month.

I am not smart enough to get my head round calculations you detailed , but I am guessing that its best to fix at a med rate without paying fees, given that its not a massive loan .

kingstreet

aggypanthus wrote: »

I have rate of 5.49
17 yrs left
cost £368.13 monthly (so that doesnt tell me the split cost )
Balance £49,053 Property value £7500

This rate ends Oct to SVR of 4.99 - £355.13 month.

I am not smart enough to get my head round calculations you detailed , but I am guessing that its best to fix at a med rate without paying fees, given that its not a massive loan .

£49,053 x 5.49% / 12 = £224.41 per month interest.

Your payment £368.13 - £224.41 interest = £143.72 capital element.

aggypanthus

Thanks for all you help x

vb1986

Hello kingstreet, if the interest is calculated daily wouldn't the proportion of the interest decrease every month, and the capital increase? From your calculation, the way I understand it the monthly capital paid back appears to have no impact on interest until the following year.

kingstreet

vb1986 wrote: »

Hello kingstreet, if the interest is calculated daily wouldn't the proportion of the interest decrease every month, and the capital increase? From your calculation, the way I understand it the monthly capital paid back appears to have no impact on interest until the following year.

Just reduce the balance each month and re-work the interest.

getmore4less

just use a simple calculator like

https://www.whatsthecost.co.uk