Mortgage terminology help needed

bylromarha

What sums would you do to calculate this early repayment charge? I don't have a degree in tosh so can't answer.

The amount repaid or transferred x 85 days additional gross interest at the rate of 4.59 per annum.

It then goes onto say the maximum charge that you could pay £688 if the whole loan is paid back.

This is based on a loan of £64000.

Any help gratefully received as Abbey couldn't give me a precise figure on this. Grrr.

YorkshireBoy

If you make a partial payment of £20,000...

£20,000 x 4.59% / 365 x 85 = £213.78


If you settle the whole mortgage early...

£64,000 x 4.59% / 365 x 85 = £684 (£4 out, but near enough!)

bylromarha

Love ya!

Nice to know the people who approved the thing couldn't tell me that.

payless

Does the product allow a certain % in overpayments , taht are penalty free, or have you used taht already ?

bylromarha

payless wrote:

Does the product allow a certain % in overpayments , taht are penalty free, or have you used taht already ?

We haven't used this yet no.

We can pay 10% in overpayments. Why you ask? Do you see a sneaky bypass to take the charge even lower?

payless

Are you looking at reducing the debt, or redeeming totally - if latter is that due to a sale ?

obviously you need to check that yopu meet the conditions for any "penalty free" overpayment.... but if you do I would assume you would want to

1. Make use of this years "allowance" ( might be difficult if only funds are coming from a sale)

2. Again , not really a big thing if selling ... but if its an overpayment, calculating if worth leaving a chunk until you can use next years allowance

3. If selling, have you calculated if worth porting....