Mortgage question

rlove

I would be grateful if anybody could help me understand what I suppose should be a simple mortgage question, but I'm not currently understanding it.

If I have a £135k mortgage @ 1.99% fixed for 5 years, repayments of £656 month (so £39,360 made in mortgage payments over the first 5 years) after those 5 years how much of the capital will I have repaid?

I understand the interest is paid of first, but surely after 5 years *some* of the capital has been repaid?

Thanks for any help.

Caz3121

how long is the full mortgage duration?

rlove

Caz3121 wrote: »

how long is the full mortgage duration?

Thanks.

21 years, although goes back to standard variable after 5 years (at which point I'm likely to look for another deal).

Cornucopia

The interest alone over that period would be £2686pa, or £13,490 for the 5 years. So, of your payments of £39,360, around a third is interest and the rest capital.

There is some finessing possible with regards to compounding of figures, but that should be roughly right (an under-estimate, if anything).

rlove

That's great. Thanks very much for your help.

Just found a little online tool to help work it out too, which seems to roughly confirm your figures.