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Beginning of the mortgage

edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
3 replies 620 views
Help1234Help1234 Forumite
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edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
Hello, Probably the wrong forum given I have only just got my mortgage in February 2018! But I was wondering do you pay off any equity in the first few years? My mortgage payments are £521 per month. I owe £141,000 and my interest rate is fixed for 2 years at 2.69%.

If I sell in say February 2023 (5 years of mortgage), will I have built up any equity or am I just paying interest at the moment?

Replies

  • madvickermadvicker Forumite
    156 posts
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    Yes you do, but the proportion of interest to capital in your monthly payment is something like: £350 interest, £171 capital. As the term goes on the interest element will reduce and the capital element will increase.

    In 5 years you will have paid about £12k in capital.
  • Help1234Help1234 Forumite
    309 posts
    Fifth Anniversary 100 Posts Name Dropper
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    Thank you that's really helpful - I forgot to add our mortgage is over 35 years. Not sure if that makes any difference.
  • madvickermadvicker Forumite
    156 posts
    First Anniversary
    I haven't done any calculations, just rough estimates. Search for mortgage amortization calculators and you'll be able to see the breakdown of capital vs interest in your monthly payments.
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