How demotervating !!

AzGotNowtLeft

First Post!, Got a morgage in march 07, £121,000 over 30 years, been making small overpayments each month, as cash is very short. rung up morgage company today, just out of curisoity ( or however you spell it )

And they total i have paid including the overpayments is £7029.84 and the morgage has only reduced by £585 quid :eek: :eek:

god do i feel down:(

Kaz2904

Unfortunately that is the way it goes. Remeber that each time you make any overpayment this early on it is extremely valuable over the term of the loan.
Really you can't look at how much you have paid over the last ... months because the vast majority of it will be interest.
Over time the interest decreases and you will pay more capital- your overpayments are making that day closer.

esthomizzy

I know it's very depressing isn't it. If you can't afford more then you can't afford more but you can look at the exact amounts your payments or overpayments are making off the capital on http://www.whatsthecost.com/ by playing with your current term and alternative proposed terms. When I did it I discovered that 200 quid a month would change my new 25 year term into 19 years. Although I can't afford the extra 200 really I am trying hard by reducing my other costs so I can pay it (and hoping that somehow magically my income will increase at some point so that this will be less of a struggle).

AzGotNowtLeft

Thanks Kaz & esthomizzy,

I just expected it to be a lot lower than 585 quid when you pay £7000. its gives a whole new meaning to the term "Lonesharks" :rotfl:

catshark88

Sympathy all round! Blinking banks!

mrke

You may feel down but you could look at this another way:

Your small overpayment of say £15 per month will knock about 1 and a half year off the mortgage and could save you getting on for £8000 so this is very worth while.

Keep overpaying, and add a little extra in the future if finances allow and the savings will be even greater.

Good luck......

17Dave

Com on - your only 8 months into a 360 month deal!!
I think you are about £60 ahead - if you are paying at 5%

At 5% at the end of year one your monthly payment will be contributing approx. £152 towards reducing the capital. By the end of year 10 £238, 20 392 and 29 £615. Its a long run not a sprint.
Keep smiling

santashelper_2

know how you feel we had an endowment been paying for 15 years in the end it amounted to nothing and i was working full time instead of being at home with my kids to pay off my mortgage when in the end it was all for f...all now that is depressing.

ailuro2

£10 a month extra will save you one whole year of mortgage payments.;)

The sooner you start to overpay, the sooner you start depriving the bank of interest.:D

MissKJ

You need advice on mis-sold endowments?

santashelper wrote: »

know how you feel we had an endowment been paying for 15 years in the end it amounted to nothing and i was working full time instead of being at home with my kids to pay off my mortgage when in the end it was all for f...all now that is depressing.

IveSeenTheLight

AzGotNowtLeft wrote: »

First Post!, Got a morgage in march 07, £121,000 over 30 years, been making small overpayments each month, as cash is very short. rung up morgage company today, just out of curisoity ( or however you spell it )

And they total i have paid including the overpayments is £7029.84 and the morgage has only reduced by £585 quid :eek: :eek:

god do i feel down:(

It sounds like you have encountered what many do when they get a mortgage.
Initially, you probably didn't have to make a payment for over a month, maybe even almost two months. this just means that the interest has been added to your mortgage and since you have been paying it off.
I worked out that it was 4 months after I got my mortgage before I had reduced the mortgage bcack to my initial "borrowing" level

Its handy to have this gap when you move into your new home, but you probably end up paying 4 months to recover