quick one about interests

EU134

Hello

Sorry for bothering you, just a quick one: let's say I want to take mortgage for 100k at 3%. I pay interests and mortgage over two years which means I will owe bank less than 100k as I paid interests and part of the 100k. If I remortgage at 3% will my rates be lower? do interest count from 100k minus what I paid in or do they count from 100k all the time?
Sorry if it sounds silly but am curious
Thanks for answers

CKhalvashi

It will depend on several things.

If you borrow £100k on a 25yr mortgage, then remortgage in 2 years for a £25k mortgage at the same rate, the payments will be lower.

If you remortgage on a 23yr mortgage (same original term), at the same rate, the payments will remain the same.

You will pay more per month, but less interest overall on the 23yr term.

CK

Foxy-Stoat_3

On my mortgage statements the interest is worked out on a daily basis, so month one it would be £100,000 plus interest (say £450) = £100,450 less mortgage payment of £525 = £99,925.00....next month same again. £99,925 plus interest (say £445 depending on the number of days in the month) = £100,370 less mortgage payment of £525 = £99,845.00.

And who said renting is 100% end money !!

If you remortgage after your fixed rate is up then remortgage for 23 years, so the date you clear the mortgage won't change.