re-mortgaging

[Booldawg]

I'm about change my mortgage to a fixed rate for 2 years. The monthly payments are based on what I orginally borrowed 2 years ago when I bought the house. What happens to the capital that I've paid off in those 2 years?

[Ethel]

What sort of mortgage is it? Repayment or interest only?

If it is interest only you will not have paid anything off the capital.

But even if it is repayment, you will have paid very little off the capital, if anything, in the first two years.

You should have annual mortgage statements that show your payments and the amount outstanding.

[Booldawg]

Its repayment. My statement shows I've paid off just under 3k during the 2 years. My new mortage is based on what I originally borrowed. What I'm interested in knowing is what happens to the 3k I've paid off, as that hasnt been taken off my new mortgage offer.

[amanda.1982]

They will always go on the original figure because that is how you eventually pay it off after 25 years.

They will still take into account your 3000 you have paid off so if you have a mortgage of 100,000 say that wont change but the amount owing will be 97,000. If your still worried give your mortgage people a call. If you are changing mortgage companies then that is a different story but if you are staying with the same company its fine.