Questioning Capital

daniel_owen_uk

The girlfriend is sorting out her property share with her ex through some solicitors, and whilst I understand most of it the capital payments are a little confusing.

2 Years ago she owed 94k on the mortgage (obviously some of these figures will be rounded). Today she owes 91k

Now as part of splitting the equity in the property her solicitor has said that 50% of the capital payments can be taken into account.

The breakdown we have from the Halifax, show approximately £250 a month.

What I don't get is 24 x 250 = 6000

So why has the total amount owed gone down only £3k? (it's not early repayment charges either).

opinions4u

Have they had the cheek to charge interest on the mortgage?

Here's an online tool that can help show how much the debt should have fallen by.

I think you need to provide more figures if anybody here is to be able to help.

Jez-_2

I assume that he has removed the interest element of the payments to arrive at that ~£250pm figure.

Best bet here would be to ask the lender for a full statement covering the 24 months.....

daniel_owen_uk

opinions4u wrote: »

Have they had the cheek to charge interest on the mortgage?

Care to explain? With less time to pay, less money oweing how would the interest make a difference? Surely both figures include interest?

BTW I should explain we have had a breakdown from the Halifax, of payments from the past 2 years that show both interest and capital repayments.

Total mortgage is approx £650 a month with approx £250 being capital.

daniel_owen_uk

I understand it all, just can't figure out how paying 6k CAPITAL off the mortgage has not reduced the redemption by 6k.

opinion4u you calculator supports what I was thinking capital payments reduce the balance of the mortgage, but does that translate into redemption?

daniel_owen_uk

Ok solved it;

Our solicitor claimed that we had paid £3657 in capital payments over 28 months

Our July 2007 balance was £94771 and our current TOTAL OUTSTANDING BALANCE is 91114

I added up the capital payment breakdown and it added up to just over £5k

Unfortunately our solicitor can't do simple mathematics.

She should have used our current balance, as clearly early redemption fees (that are included in the total outstanding), shouldn't be used in a calcuation of capital.

Our current balance is 89257, so:

94771.98 - 89257 = 5514 (which is how much we have paid in capital).

Jez-_2

Shocking that the solicitor managed to get it so wrong

daniel_owen_uk

The thing that annoys me is she included itemised monthly capital payments breakdown in her letter, so you can clearly see that if you add them up, you get a different figure.

Wasn't the only figure she got wrong, she worked out the net proceeds of sale, split it into two, then quote the figures split up "person A" & "person B", but quoted DIFFERENT figures!!!