Mortgage payments (1 Viewer)

[Sky Blue Pete]

I know I’m being silly

Can someone explain to me why the following is the case

Same company - same interest rates

Fixed rate 2 years but overall mortgage over 8
Fixed rate 2 years but overall mortgage over 10

Why does the monthly figure differ so much?

As I say sorry to be thick

 

---

[fernandopartridge]

I know I’m being silly

Can someone explain to me why the following is the case

Same company - same interest rates

Fixed rate 2 years but overall mortgage over 8
Fixed rate 2 years but overall mortgage over 10

Why does the monthly figure differ so much?

As I say sorry to be thick

Because the interest is applied to each year of the mortgage

 

[RegTheDonk]

Because you need to pay more over the shorter term to pay the full loan off?

 

[SAJ]

I know I’m being silly

Can someone explain to me why the following is the case

Same company - same interest rates

Fixed rate 2 years but overall mortgage over 8
Fixed rate 2 years but overall mortgage over 10

Why does the monthly figure differ so much?

As I say sorry to be thick

Exactly as the two answers you’ve had to date. I imagine the 8 year figure is approximately 20% more than the 10 year figure.

 

[Sky Blue Pete]

Because the interest is applied to each year of the mortgage

That’s no help and I know I’m being thick

 

[Sky Blue Pete]

Because you need to pay more over the shorter term to pay the full loan off?

That makes absolute sense thank you

 

[Sky_Blue_Daz]

I was working at a school last week an arts teacher who has been known to look down at me and some of my colleagues was in the staff room comparing their house price with other staff and then began to cry as they can't afford their mortgage and are having to bring a lodger in to help

They asked me how long I had left on mine and told them I paid it off 5 years ago




Admittedly I haven't but their face was a picture