Mortgage Balance

Reds-on-Sea

Hello,

as my mortgage is with HSBC whom I also bank with, delightfully, I get to see my balance every time I log in to internet banking. I only completed on Friday just gone, and my balance - £181,800, is obviously showing up now.

What's the deal with the balance/interest etc? I was expecting to see a much bigger balance including lots of interest already - like when I took out a loan, and they added the interest to the entire balance, i.e I borrowed £7k, and total payable back was £8100 straight away etc. Will my mortgage balance outstanding go UP as time goes on (I'm assuming as interest is calculated daily, it would go up every day?) or will it just remain at £181,800 for ages until that's all I have to pay back?

I'm confused! Can somebody enlighten me please?

Thanks

windym_2

With my HSBC mortgage, although the interest is calculated daily it is only added monthly. So once a month they add a wad and once a month I give a wad.

Reds-on-Sea

okily - cool thanks Windym. so... as long as my monthly payment is more than my interest, the capital amount will come down every month? Abeit very slowly! Then they stick another wad of interest on it? All I want to see is my capital decrease - then I feel like I'm getting somewhere eh!