Mortgage Payments

Discussion in 'General Chat' started by Newton's Ring, Feb 12, 2014.

  1. Newton's Ring

    Newton's Ring
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    I've just re-mortgaged and wanted to check if this seems right...

    In August 2005 I borrowed £142000 (on a 10 year fixed rate of 4.95%)
    I've just paid out around £1400 to come away early and have £113000 outstanding
    So in 8+ years, I've paid off £29k capital

    I pay £866 monthly, so £10392 over 12 months and £83136 over the 8+ years since 2005
    I appreciate that there's interest but £54000 interest in 8 years...does that sound right?
    Is it exponential?
     
  2. lowmans100

    lowmans100
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  3. Newton's Ring

    Newton's Ring
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    Thanks for that. It looks like it's right then.
    Still feel sick though :(
     
  4. lowmans100

    lowmans100
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    In the early years of a mortage the interest eats up your payments. On long term loans even small overpayments can make a huge difference on the ovarall interest paid and final loan term.
     
  5. SteveCritten

    SteveCritten
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    If you can afford it then overpay as much as possible in the early years, oh and I do hope you got a lot lower interest rate as 2.9% seems about the norm at the mo.
     
  6. Trollslayer

    Trollslayer
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    It depends on the loan to value ratio, that really affects the offers.
     

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