To feel robbed!

[BlahBlahBlahWhatever]

We've owned out house for 1yr. We've just recieved our mortgage statement. The repayments for the year have totalled circa £13000. £8000 of this is interest!
I know what the interest rates are, but when you see it in real money on paper it's just shocking!

[TiredOfSleep]

Agree it's gutting, but the early years are the worst. Each year the same payment pays off more and more capital. Well done on buying!

[BlahBlahBlahWhatever]

Thanks tired! I'll look forward to next yrs statement then!

[MarthaCliffYouCunt]

Had you not worked out before signing what you would be paying in interest?

[BlahBlahBlahWhatever]

Yes ofcourse martha we knew what we were doing and how much we would be paying. Still a shock though, when you get the statement

[Lunar1]

Think of it this way, if you were renting then all the 13000 would be lost.

[GoringBit]

I know it looks alarming, blah, but in the early years, you will pay far more interest than capital. At this point, I'd offer to explain the rule of 78, but I have had wine.

One thing I would suggest is that if you have surplus funds at the end of the month, chip away at the mortgage. After we'd had ours 5-10 years, I started to pay an extra £30-50 a month, and if we hadn't sold up, the mortgage would have been paid off a couple of years early.

[Princesspeach1980]

I try not to look at the mortgage statement, it's soul destroying! The ratio of interest - actual payments gets better as the years go on though.

[greybead]

Well, that is actually good. In the old days, if you'd made £13,000 worth of repayments on a 25 year mortgage with a much higher interest rate, in your first year, £11k or £12k would be interest. Next year if you pay the same £13,000, less of it will be used for interest because the outstanding capital balance has decreased. Look on the bright side!

[BlahBlahBlahWhatever]

It does just seem criminal that they can take so much interest!

[BlahBlahBlahWhatever]

I'm just going to take a mental note of what the envelope looks like & come next yr, file it without opening it.

[littleblackno]

I agree the 1st few years it can be a bit disheartening. I'd also agree that if you can overpay any amount then it can become rather satisfying looking at the mortgage statement!

[mineofuselessinformation]

It is crap, but just think of when you get to the other end and you can see the capital amount going down - very satisfying!

[justdontevenfuckingstart]

Not criminal at all. We don't have it so have to borrow and this is the price we pay. Thank God it's a low rate at the moment.

[RortyCrankle]

Bear a thought for those (me) whose mortgage interest rate was 15% at one point in time. That really makes your eyes water.

[abigamarone]

Back in the heady days of my first mortgage, bank rates went up to 15% (and back down again a couple of hours later, they were still about 8% though)

[Cressandra]

It's a glass half full/half empty thing though. We bought a while back so expectations are totally different - I literally looked at those numbers and thought wow, she's paid off 5k already!

[WhenSheWasBadSheWasHorrid]

I feel your pain it must have been hell when rates were high

We are trying to pay outs off as fast as we can.

[Musicaltheatremum]

I locked in to a 8.99% deal for 5 years as rates fell and fell. They were at about 4% when our term finished. The lender who dealt with us was always a patient of mine and was always so apologetic when she came in to see me.

[Lightattheend]

I love getting my statement. One year I was that excited because it was under £100k I shrieked "the house is coming down!" That worried the kids until I explained what I had meant.

[BlahBlahBlahWhatever]

Oof... Don't know how I'd have coped with a 15% interest!

[Toffeecrispy]

It is bad but worth it you have your own house i dream of that one day.

[bumblebee1234]

Musicaltheatremum f@ck your luck.

[Fluffycloudland77]

I overpay £30 a month. Knocks a year off the term & you don't notice it.

[AwakeCantSleep]

That's £21.85 per day in interest, which enables you to own your place. Sounds good value to me. Hotels are much more expensive, and you don't get to own your room at the end of your stay

[AnotherPrickInTheWall]

The biggest proportion of interest is paid in the first few years, You will see a big dip in your balance soon. Don't fret.