Natwest mortgage break down..

maxtuuuu

Hi guys,
I have a natwest mortgage, at the moment monthly repayments are £399.91. Looking on my online mortgage statement £399.91 comes off on the day the repayment is due.

So for the sake of this say i have £100,000 owing, that takes it to £99,600.09, on the 22nd of each month the balance increases £235.89, taking my total balance for the month too £99,835.98.. So total payed off the mortgage that month is £164.02..
I take it the other £235.89 for the original repayment of £399.91 is interest, is that correct?

Sorry very new too all this!
Thanks

shop-to-drop

Yes, correct.

nidO

That's correct.

Interest is calculated daily, so the day your repayment is made your balance will go down by the amount of your repayment (£399.91) but you'll then be getting 1 day's interest re-added to your balance every day of the month until your next repayment, so by the time your next repayment is due you have the original balance, minus your first repayment, plus a month's worth of daily interest.

maxtuuuu

Thanks that makes it clearer! I'm a first time buyer so this is all very new too me!

One other question is if i up the monthly repayment from £399.91 too say £500 pm the interest deducted will stay the same as if i was paying back the minimum required amount?

Thrugelmir

So if you can afford to overpay the mortgage. Even by a few pounds a month. You'll speed up repayment of the debt. Think of it as rolling a snowball along the ground. Will start small and over time gain momentum.

Keekles

maxtuuuu wrote: »

One other question is if i up the monthly repayment from £399.91 too say £500 pm the interest deducted will stay the same as if i was paying back the minimum required amount?

The way mortgages are structured is so you pay back more interest in the early stages of repayment and increase your capital towards the latter end of the term.

An extra ~£100 per month as you suggest will make small dents in the interest but make a notable difference over time as above.