Mortgage interest doesn’t add up!

leathers123

Got to love a spreadsheet, only reason I looked at it as mine didn’t add up. I don’t think I’ve ever seen/looked at those annual statements but all on the online account, going off those figures it suggests around £9500, which works out against the 5 yr mark on a 10 yrs term. Taking into account the first month there was no payment and then Im working off December but calculated the January payment that’s not gone explains the additional £3000 missing. 

As always Operator Error, cheers for the assistance. 

herebeme

Just also remember that you don’t repay only what you borrow. You repay loan (A) + interest (B) to give total repaid amount (C) via monthly repayments that include both interest and capital (D).  

£156900 loan amount (A) 
£169800 what you will repay (C)

“Meaning I have paid of £71900
monthly payments for 5yrs = £84900”
84900 (what is left to pay from C) - 71900 (repaid already) = £13000 (B, essentially the 12911 interest projected). 

All this sum shows you is the total you will repay over the course of the mortgage. Not what you have already paid in interest. 

It obviously not this simple as this due to the interest + capital repayment from the start and at variable proportions mentioned above, but it might help you see why your initial calculation was incorrect. 

Edit. And as the statements show. You pay more off interest in the beginning. And more off capital at the end. Which is why a simple X-Y sum doesn’t really help. 

Anyway. Glad you found the statements. I find they are fairly clear. But totals across the full term would be helpful feature.