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Early repayment statement IO mortgage
Toto
Posts: 6,680 Forumite
Hi all,
I have just received a statement for the early repayment of my mortgage (I am selling my house) I was aware I would have to pay a redemption penalty (8,087.5 :eek: ) but on top of that I have another figure which is interest of £2,213.20.
Can someone tell me exactly what this interest figure is based on? Surely the monthly repayments to date cover interest on the actual mortgage and the £8,087 as a penalty charge can't have another 25% interest on top, can it? Sorry if I sound dumb but I have never come across this situation before.
In total it is going to cost me around £10,500 to get myself out of this mortgage. I was tied in for 3 years with 14 months left to run on that.
I have just received a statement for the early repayment of my mortgage (I am selling my house) I was aware I would have to pay a redemption penalty (8,087.5 :eek: ) but on top of that I have another figure which is interest of £2,213.20.
Can someone tell me exactly what this interest figure is based on? Surely the monthly repayments to date cover interest on the actual mortgage and the £8,087 as a penalty charge can't have another 25% interest on top, can it? Sorry if I sound dumb but I have never come across this situation before.
In total it is going to cost me around £10,500 to get myself out of this mortgage. I was tied in for 3 years with 14 months left to run on that.
:A
:A
:A
"Everyone is a genius. But if you judge a fish on its ability to climb a tree, it will live its whole life believing that it is stupid" - Albert Einstein
0
Comments
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who is your mortgage with?
Is there a total payments figure underneath that? If so, it will be the interest from the start of the lenders financial year to the date of redemption and then they will deduct the total payments from the figure to ensure that you pay the interest due between these 2 figures.
If you make another payment between the statement being issued and you redeeming then this will overpay the redemption so a refund will be dueI am a Mortgage AdviserYou 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.0
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