I've been paying my mortgage for 10 years on fixed rate interest (34 year loan).
I'm a bit confused about how the loan works. I can see from my statements that when I began making the repayments, the interest portion was larger than the capital portion. This year will be the first year the two amounts are pretty much equal and it will stay like that for three or four years until the capital portion becomes larger than the interest portion.
My question is - at what point will I start noticing a reduction in my repayments? Surely they've got to reduce as I pay off the loan? Or the fact that I'm on a fixed rate means it wont reduce?
I'm a bit confused about how the loan works. I can see from my statements that when I began making the repayments, the interest portion was larger than the capital portion. This year will be the first year the two amounts are pretty much equal and it will stay like that for three or four years until the capital portion becomes larger than the interest portion.
My question is - at what point will I start noticing a reduction in my repayments? Surely they've got to reduce as I pay off the loan? Or the fact that I'm on a fixed rate means it wont reduce?
