Mortgage capital

[Spicykitten]

My partner and I bought our house a year and a half ago, but I feel like we’re only paying off the interest as the capital isn’t reducing.

Please tell me it’ll get better! We’ve started overpaying £10 per month (I wish we could overpay a little more.)

Will this help?

The early years always feel like it is pretty much all interest but that will change over time. The over payment will help speed that up, yes.

Try using a mortgage overpayment calculator to cheer yourself up. It shows you how many years you can knock off your mortgage by overpaying.

Yeah can feel that way - look up compound interest

As previous poster said - it'll get better

Oh I was devastated when my annual mortgage statement came in the last year I’ve paid off just over £1000 and made payments of around £9000

I just looked at NatWests overpayment calculator I didn’t realise even £20 extra a month would reduce my term by about 2years here’s me thinking i need to pay large amounts so hadn’t bothered!

Thank you. I’m so glad to read this. I really feel like we were stuck in a rut (as far as our mortgage is concerned!)

At the moment, if we continue to overpay just £10 per month on our mortgage, it’ll knock off 11 months from our term! Saves a lot of interest too.

I wish we could overpay more than the £10 each month, and I hope that someday we’ll be able to 😊

I bought my house a year and a half ago and I am planning to start overpaying from this month.

I had so many upgrading/repair costs in the first year and then I spent time trying to rebuild my savings.

But overpayment, even a small amount, is next on my long term financial planning :).

The figures are daunting in the early years but it does get better and you'll hopefully find that you're able to over pay a bit more as time goes on. You've done well to start the over payments so soon! Try and just push it all to the back of your mind, focus on enjoying your home and know that one day you won't owe a penny to anyone!

Any overpayment helps. But, also, so does paying fortnightly vs monthly.

www.canstar.com.au/home-loans/weekly-fortnightly-monthly-repayments-better/

Fortnightly might be hard to manage if you're paid monthly and it's only the same as paying a bit extra each month, so might as well just do it like that instead.

OP if you have a play with the calculators here you'll see that your debt will start to accelerate downwards over time.

But I'd also caution against assuming that overpaying actually saves interest - currently it's easy to beat mortgage rates with savings so it's beneficial to save separately and pay off a lump sum each time you change mortgage deals.

Thank you. I’ll definitely look into high-interest savings accounts