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  • FIRST POST
    • Jdavis
    • By Jdavis 10th Oct 16, 1:10 PM
    • 6Posts
    • 0Thanks
    Jdavis
    Mortgage Help - Early Redemption
    • #1
    • 10th Oct 16, 1:10 PM
    Mortgage Help - Early Redemption 10th Oct 16 at 1:10 PM
    Hi everyone,

    We are struggling to understand the redemption figure on our mortgage;
    The mortgage was started 01/2016 for £49600 at a rate of 8.64% (Poor credit) for a 23 yr term.
    Our rate has now dropped to 7.1% (still extremely high).
    We are looking at selling our home and have asked for an early redemption figure.
    They have come back with £41400 to redeem.
    I can't get my head around the fact that after 10 years of payments I have only paid £8000 of the balance. Looking at the calculators online i get figures between £35000 and £37000 as being the amount outstanding at the end of the current month.
    Could someone please try and explain the difference?
    thanks in advance
    John
Page 1
    • kingstreet
    • By kingstreet 10th Oct 16, 1:16 PM
    • 30,025 Posts
    • 15,963 Thanks
    kingstreet
    • #2
    • 10th Oct 16, 1:16 PM
    • #2
    • 10th Oct 16, 1:16 PM
    What have your annual mortgage statements shown as your year-end balances?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Jdavis
    • By Jdavis 10th Oct 16, 1:17 PM
    • 6 Posts
    • 0 Thanks
    Jdavis
    • #3
    • 10th Oct 16, 1:17 PM
    • #3
    • 10th Oct 16, 1:17 PM
    not sure as i don't have them to hand at the minute. Not sure i even kept them tbh. Will have a look and see if I can dig one out.
    • Jdavis
    • By Jdavis 10th Oct 16, 1:24 PM
    • 6 Posts
    • 0 Thanks
    Jdavis
    • #4
    • 10th Oct 16, 1:24 PM
    • #4
    • 10th Oct 16, 1:24 PM
    Found one out for last year, at feb 2015
    Balance £45896.72
    Total repayment amount required at feb 2015 £46041.72
    That includes admin fee of £145

    once again, all calculators online are showing a balance in the region of £35000-£38000 depending on interest rate

    thank you
    • Brock_and_Roll
    • By Brock_and_Roll 10th Oct 16, 1:33 PM
    • 697 Posts
    • 659 Thanks
    Brock_and_Roll
    • #5
    • 10th Oct 16, 1:33 PM
    • #5
    • 10th Oct 16, 1:33 PM
    By my calculations, after 10 years the outstanding would be about £38,753.


    Was there PPI involved?
    A brokers fee capitalised into the balance at inception?
    • Jdavis
    • By Jdavis 10th Oct 16, 1:45 PM
    • 6 Posts
    • 0 Thanks
    Jdavis
    • #6
    • 10th Oct 16, 1:45 PM
    • #6
    • 10th Oct 16, 1:45 PM
    No PPI as far as i'm aware. The arrangement fee was paid at inception (£2095) and is not included in the mortgage (company has confirmed this)

    I just can't get my head around it. something seems very awry with this

    thanks again
    • Thrugelmir
    • By Thrugelmir 10th Oct 16, 1:47 PM
    • 51,291 Posts
    • 43,093 Thanks
    Thrugelmir
    • #7
    • 10th Oct 16, 1:47 PM
    • #7
    • 10th Oct 16, 1:47 PM
    You need to review the annual statements that you were sent.

    Is there any form of exit penalty?
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • Jdavis
    • By Jdavis 10th Oct 16, 1:51 PM
    • 6 Posts
    • 0 Thanks
    Jdavis
    • #8
    • 10th Oct 16, 1:51 PM
    • #8
    • 10th Oct 16, 1:51 PM
    trying to dig out my statements now. they said there would be no early redemption fee just an admin fee of £145.
    I'm now regretting being very relaxed with my finances previously
    • Jdavis
    • By Jdavis 10th Oct 16, 2:31 PM
    • 6 Posts
    • 0 Thanks
    Jdavis
    • #9
    • 10th Oct 16, 2:31 PM
    • #9
    • 10th Oct 16, 2:31 PM
    i think i might have figured it out. thanks for the help though.
    • SavingSteve
    • By SavingSteve 10th Oct 16, 2:47 PM
    • 476 Posts
    • 205 Thanks
    SavingSteve
    Might be helpful for others if you post your conclusions?
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