I owe more than I borrowed?

crazyfranky

Hi everyone. Apologies if this is a stupid question and everyone knows something I don't but, put simply, after having taken out a mortgage and paying it off for a year, is it right that I no owe more money than I initially borrowed?

Any advice most appreciated!

not_tonight_josephine_2

are you on interest only? Did you opt to add product fees onto the mortgage?

_Andy_

Not enough info to go on - are you including ERCs, booking/arrangement fees, single premium ASU?
I'm guessing you have a redemption statement that includes early repayment charges

beecher2

Are you interest only? Have you gone into arrears and had interest added to the amount outstanding?

de1amo

İ used to get a end of year statement from my lender on the anniversary of the start date-
i remember my first mortgage being repayment and when i moved it to a new lender nothing had reduced!!--it was only for 6 months and they pushed my onto an endowment-in 1987 so prior to trying to get compensation now--does anyone know why i cant claim-sorry to add it here but i am new and dont know how to set a thread!!-any advice-G

crazyfranky

In Jan 2009 I borrowed £80,750 - 95% of the £85,000 purchase price. To this, a £495 product fee was added and a higher lending charge of £1232.50. I have been paying £600 a month mortgage which is a 5 year fixed rate repayment mortgage.

I understood the interest rate to be fixed at 7.340% but on my statement there is a list a page long of the different rates that have been applied over the course of the year - I don't really understand what these are.

My year end balance stands at £82,485, and the amount owed as of 31/12/09 is £81,624.30. Perhaps this is right - I don't know!

bryanb

By my calcs you borrowed £82,477.50.
The early part of a repayment mortgage is mostly clearing the interest.

mmcmahon

Try this -

http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx

Enter mortgage amount, term and interest them click on the amortization button. This should give you an idea of your outstanding balance each month.

beecher2

crazyfranky wrote: »

In Jan 2009 I borrowed £80,750 - 95% of the £85,000 purchase price. To this, a £495 product fee was added and a higher lending charge of £1232.50. I have been paying £600 a month mortgage which is a 5 year fixed rate repayment mortgage.

I understood the interest rate to be fixed at 7.340% but on my statement there is a list a page long of the different rates that have been applied over the course of the year - I don't really understand what these are.

My year end balance stands at £82,485, and the amount owed as of 31/12/09 is £81,624.30. Perhaps this is right - I don't know!

The different rates will be the changing SVR - they post them even if they don't impact on your payments. It sounds about right that you'd owe £81,000 or so after a year when you take into consideration the product fee and HLC. You're paying most interest at the moment, as it is so early on in your term.