Beginning of the mortgage

Help1234

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?

madvicker

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.

Help1234

Thank you that's really helpful - I forgot to add our mortgage is over 35 years. Not sure if that makes any difference.

madvicker

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.