Re: My bank don't know what a tracker mortgage is!
Re your query Clarkey. I learnt the theory in school and when i took out my mortgage i was given what's called a Amortization table showing how much of my payments each month are off the interest and how much off the capital for the first year and then the yearly amount off each. If you have an interest only mortgage when the interest should stay the same each year subject to interest rate changes. you never pay off the capital so the interest is being charged on the same sum (until you do). With a standard mortgage some of the money paid each month is going off the capital some off the interest, therefore each year the capital should be reduced and if interest rates stayed the same your paying less interest each month and even more off capital. My TRS seems to go down each year and it is more obvious if you have the mortgage over a shorter term. You can get sites which will work out your amortization for you.
Re your query Clarkey. I learnt the theory in school and when i took out my mortgage i was given what's called a Amortization table showing how much of my payments each month are off the interest and how much off the capital for the first year and then the yearly amount off each. If you have an interest only mortgage when the interest should stay the same each year subject to interest rate changes. you never pay off the capital so the interest is being charged on the same sum (until you do). With a standard mortgage some of the money paid each month is going off the capital some off the interest, therefore each year the capital should be reduced and if interest rates stayed the same your paying less interest each month and even more off capital. My TRS seems to go down each year and it is more obvious if you have the mortgage over a shorter term. You can get sites which will work out your amortization for you.