Buying a house on a mortgage can be a slow process - especially in the early days of the loan, when a large portion of your monthly payment goes to paying off interest rather than repaying the loan. So just how much of 'your' home do you own year-by-year?You need the Flash Player (version 8 or higher) to view this - download Flash. http://www2.open.ac.uk/openlearn/moreorless/mortage10.swf Creative-Commons The Open University
This is, of course, just a rough illustration - and is based on certain assumptions:
According to the Council Of Mortgage Lenders, the median price for a house bought on a mortgage as of May 2008 was £218,151 with a loan to value of 78%. We've rounded these to £220,000 and 80%. We're also making the (unlikely) assumptions that the actual value of the house and your interest rate won't change over the length of the mortgage.