How much is your mortgage and interests per month?

What is the interest rate and how much is the mirage?

Sorry mortgage

My mortgage is £780 a month and £230 of it is interest. It's on a very low interest rate

You’re question doesn’t really make much sense- in the early days of a mortgage the interest is much higher in £ term, the more you pay off the lower it is.

Ours is just over £800 a month and we’re on a fixed rate of 3.2% after coming off of a tracker mortgage last year. I think the interest rate previously was 1. something.

We pay £1000 a month and the interest is about £240

It really depends on your interest rate. On 1.7% on £305k mortgage I pay 1665 a month of which 430 approx is interest. But I over pay 335 each month so pay of 2k a month.

That depends on the length the mortgage and the interest rate. There are calculators online to show you that. Basically because your repayment is fixed, at the start of the term, most of the money go on to the interest. Towards the end of the term, it’s much more the principle. (I hate it when people say school never taught this, but they do via fractions and percentages).

Anyway, I have less than 5 years to go. My bank app says £750 a month with £49 of interest.

If you go into Nationwide website, they have easy to use mortgage calculators that you can use over & over. The overpayments one is great as it shows you the impact of various over payments & options.

Yes, love those overpayment calculators. It shows you clearly why it make a lot of sense to overpay. The smaller the loan amount, the less the interest you pay. That’s why the interest paid is smaller towards the end of the term. (The rate is fixed). And also why overpayment reduces it fast because all the money goes straight to the loan value.

you get your set monthly payment of whatever it is.

the way you can work out what proportion is interest is to literally calculate it for the month.
it gets infinitesimally smaller each month because the capital repayment shrinks the interest monthly too.

eg - a £200k (outstanding) mortgage at 3% is £200,000 x 0.03 = £6000
divide £6000 by 365 (days in the year) is: £16.44

in a 30 day month your interest would be; £493.15

if your payment is £1200 then £1200- £493.15 means your capital repayment for that month would be £706.85

the following month, you would pay 3% on £199,293.15 (because you paid £706.85 last month off the capital) but your payment stays the same.

£199,293.15 x 3% means £16.38 a day in interest that month.

I currently pay £320 a month on 1.8% interest
hav w just had to fix at 4.13% for next 5 years and payments gone up to roughly £400 a month

£613.13 per month £200 interest

Yes OP that sounds right, because you’re not just paying back your loan, you’re paying back all the interest on top of the loan too.

As your term goes on, you’ll start paying back more loan and less interest as a pp said.

It’s been explained really well up the thread.

You always pay a fixed amount. (£1020)
Each time you pay that, a proportion is interest and the rest is coming off the debt owed (capital)

So if in the first month you pay £450 interest, and £570 capital, the next month your interest will be a tiny bit lower, because you paid off £570 last month. So this month, say, you’ll only pay £449 in interest. And so on.

You pay more interest in the first years of a mortgage than in later years.

It’s best not to dwell on it, TBH!

The amount that you pay off increases as you go along because the interest is a percentage of the total remaining and there will be less in year 10 than year 1.

£1000 payment.
£128.07 interest.

You need to check with your mortgage provider (or read your paperwork!) but usually you can pay off 10% of the outstanding balance in each calendar year, whether it’s a lump sum or regular payments.

You’ll need to contact them to get their bank details and check what reference you need to put on the payment so they can match it to your policy.

You can do either but interest is calculated on a daily basis so if you paid a lump sum now, it would be better than paying a monthly amount of the same value because if would reduce your capital now,and thereby the amount your interest is calculated on. Conversely, if you don't have a lump sum now, you're better to pay off each month rather than save it all up over the year then pay a lump sum at the end as you will slowly reduce the capital and therefore the interest you pay.

There are calculator you can use to work out how much you'll save/how much time you'll cut off your loan, online.

Depends on the T&Cs of your mortgage.