Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • Bossypants
    • By Bossypants 10th Jul 17, 10:08 PM
    • 530Posts
    • 1,053Thanks
    Confused by outstanding balance as shown by Woolwich
    • #1
    • 10th Jul 17, 10:08 PM
    Confused by outstanding balance as shown by Woolwich 10th Jul 17 at 10:08 PM
    This is probably a stupid question, but I can't figure it out and was hoping someone could shed some light on it.

    In November 2016, I took out a mortgage of 235,000 over 30 years with Woolwich. I am now fully settled into my new home and would like to start over-paying on the mortgage, so I requested a current balance figure, just to know where I currently stand. The figure provided confuses me, however. It's 232,612, which, even taking into account that it includes interest accrued for the month, surely is too high? As far as I can tell, I should be repaying 7,833 capital per year in order to repay the full balance over the 30 year term, which means that, eight months in, I should have repaid 5,222 in capital so far.

    I'm sure I'm missing something, please could someone help me work out what it is? My last lender used to show the outstanding capital balance only, with interest being shown simply as a deduction on the account (i.e. I would make my monthly payment of 500, then they would subtract 150 in interest), so the whole daily interest calculation thing is throwing me a bit.
Page 1
    • Lilla D
    • By Lilla D 10th Jul 17, 10:22 PM
    • 327 Posts
    • 167 Thanks
    Lilla D
    • #2
    • 10th Jul 17, 10:22 PM
    • #2
    • 10th Jul 17, 10:22 PM
    If you took the mortgage via a broker, then they may have sent you a deal illustration including a payment schedule, which shows how your balance is reducing over the 30 years and what portion of your monthly payments is reducing the capital and thus what your balance is expected to be 8 months on.

    If you didn't get such an illustration, there are still plenty of calculators on the internet which will show you the above, so you can check it quickly. You'll need the original loan amount, the arrangement fee you added, the interest rate and the term.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • getmore4less
    • By getmore4less 10th Jul 17, 11:13 PM
    • 32,035 Posts
    • 19,222 Thanks
    • #3
    • 10th Jul 17, 11:13 PM
    • #3
    • 10th Jul 17, 11:13 PM
    look up amortization

    7,833 capital per year would be for 0% interest.

    as the interest rate goes up so do the payments and for them to stay the same throughout the full term as the interest goes down you pay less capital in the early years.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,366Posts Today

7,571Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line?

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin