Equity?

MEEKUS

Hi
I am confused as it seems like my equity in my home isn't going up even when I am making payments.

Some background
I have 20 years left of on mortgage paying
£364.94/month and my mortgage account is 58,617.00.

My house is worth 120k.

Last month I calculated that my equity would be £61,598 but now I calculate it is £61,383.

Am I doing something wrong and not understand how this works?

Sorry if im being daft.

Isthisforreal99

Genuine question, why are you doing this and why does it matter?

And without seeing your calculations it's impossible to say.

Bear in mind that most of your monthly payment is swallowed up by interest.

sgthammer

Even with *most* of your payments covering interest rather than principal, you shouldn't be £215 deeper in the hole today than you were a month ago. How did you get to the previous figure?

Did you get any kind of breakdown of the payment schedule when you took out your mortgage? Have you remortgaged at some point and missed a change in the interest rate?  Something's off somewhere.

MEEKUS

Hi - thanks for the reply

I have 19 Years 10 Months left on my mortgage. I have recently remortgaged as my other 5 year fix came to a end in September this year. It was a 2.11% fix and now a 4.32% fix. Could this be the reason?

MEEKUS

I also use this calculator to work out the equity 

https://www.natwest.com/mortgages/mortgage-calculators/equity-calculator.html

MEEKUS

Isthisforreal99 said:

Genuine question, why are you doing this and why does it matter?

And without seeing your calculations it's impossible to say.

Bear in mind that most of your monthly payment is swallowed up by interest.

I use the house valuation from 6 months ago and my mortgage balance for the calculator.
Then input in this calculator. 
https://www.natwest.com/mortgages/mortgage-calculators/equity-calculator.html

I am bothered because we are planning to move house in next two years and would like to know how much equity I have in the house so I csn then use it as a deposit 

kingstreet

As the mortgage balance would usually increase during the month until the day after your monthly payment is made, always calculate your balance on that same date each month.