My Mortgage

aayush

Hi

Happy New Year to all
can some please assist me
I moved to my new flat in Sept 2012 and my mortgage loan was £53999.00 for which my 1 payment was of £404.46 and then payment of £311.66 a month int rate of 3.69
My balance as at 03/01/2014 is £52,081.76 i can not understand that in 16 months have only cleared just over one thousand ponds of my mortgae as it is repayment

can some please advise me

TrickyDicky101

The proportion of capital repayed at the start of a mortgage is lower than at the end - to begin with on a standard 25 year mortgage, most of your repayments will comprise interest being payed off.

In 16 months (assuming 16 repayments) on a standard 25 year mortgage @3.69% pa (paid monthly) with starting balance of £53,999 and repayments in arrears you should have paid off c.£1800 so your figures look reasonable.

aayush

well i have 19 years and 11 months as 9/10/13

dimbo61

So have you
1 overpaid
2 set the term for say 21 years 3 months because you will be 65 then ?

Can you afford to overpay every month and save 3.69% Tax free ( good return)

Imma_Number

It looks like your mortgage term was 21 years and that there was about £500 of fees added to the mortgage. At least that was the way I could get the calculator to approximately match your figures.

http://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator

More of your payment goes towards the interest at the beginning because you owe the most then. Each month that goes by the interest portion decreases and the amount paid off the capital increases.

About now approx ~£150 comes of the outstanding capital and you're paying ~£160 in interest pcm.

aayush

well that what I am asking as need to see if have or need to move to a cheaper rate but may be tied up in fixed rate

dimbo61

Well you need to read the mortgage terms and conditions !
3.69% is not bad if you took it over 4/5 years ?
Loan to Value ? and how long the fix lasts is important.