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  • FIRST POST
    • Mortinfo
    • By Mortinfo 6th Mar 18, 9:07 PM
    • 3Posts
    • 0Thanks
    Mortinfo
    Fixed rate interest query
    • #1
    • 6th Mar 18, 9:07 PM
    Fixed rate interest query 6th Mar 18 at 9:07 PM
    Hi,

    I am on a fixed rate mortgage. I pay the same monthly payment but looking at my mortgage statement the amount of that monthly payment that goes to pay the interest changes every month.

    Without sounding absolute stupid is the correct

    Thanks
Page 1
    • zx81
    • By zx81 6th Mar 18, 9:10 PM
    • 16,831 Posts
    • 17,829 Thanks
    zx81
    • #2
    • 6th Mar 18, 9:10 PM
    • #2
    • 6th Mar 18, 9:10 PM
    If you are on a repayment mortgage, the amount of interest charged each month will decline at the balance goes down.

    Changes in the number of days in the month cause additional fluctuations.
    • rtho782
    • By rtho782 6th Mar 18, 9:10 PM
    • 1,091 Posts
    • 798 Thanks
    rtho782
    • #3
    • 6th Mar 18, 9:10 PM
    • #3
    • 6th Mar 18, 9:10 PM
    Yes.

    As the capital goes down each month, interest will be a lower and lower proportion of the payment.

    This is why overpaying is so powerful.
    Deposit Saved since 01/12/15: 13,000 / 15,000 House Bought!

    Debt Cleared since 01/12/15: 6,000 / 7,500
    • enthusiasticsaver
    • By enthusiasticsaver 6th Mar 18, 9:25 PM
    • 6,392 Posts
    • 13,125 Thanks
    enthusiasticsaver
    • #4
    • 6th Mar 18, 9:25 PM
    • #4
    • 6th Mar 18, 9:25 PM
    As the balance of the mortgage reduces so does the interest.

    Some months have more days in them than others.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
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