Closing Mortgage Account Statement

Whitters03

Hello all

I am currently remortgaging and have just received a closing statement from out current mortgage lender and I just don't get it!

We took out a tracker, interst only mortgage 2 years ago. The fixed rate is coming to an end so I've decided to move it to a better deal. However, the closing statement shows that I actually owe more now than I took out!

It shows that the actual amount paid is less than the interest charged on the mortgage by about £900.

I thought that we were paying off the interest of the mortgage, so would owe the same now that we originally took out.

What have I misunderstood? I don't want to get to the end of the next mortgage term and find the same thing happens.

Thanks for your help!
Whitters03

herbiesjp

Did you add an arrangement fee to the mortgage amount?

Toughluck

It is the fees added to the mortgage on completion. The only other thing is that you have had arrears and there are charges to your account.

Whitters03

Thanks for both of the replies.

The original mortgage was for £240,000 plus £599 arrangement fee, so a total borrowed of £240,599.

The closing account states there are no early redemption penalties, but a 'vacating fee' of £150 has been added (which, annoyingly, was stated in the mortgage offer but I had forgotten about).

We have never been in arrears so there are no charges on that front.

Credits to account (I assume they're the payments we have made) £11,531.99

Added to the account: £12,432.98

Total cost of closing the account £241,838.94.

Does this make sens to you?

Thanks
Whitters03

Toughluck

Yes it does sound makes sense so be assured your not being ripped off!!

InMyDreams

So all together it's only about £1K more than you were expecting, having taking into account the fees you know about, right? This is going to be less than one months payment, I assume.

Could it just be the interest accrued on the balance since your last payment? Are you due to make a regular payment soon?

Whitters03

Thanks InMyDreams!

I am indeed due to make a regular payment on 17th of this month of c.£950, so maybe this is where my confusion lies....it doesn't take much to confuse me!