Does this sound right? 3 year fixed mortgage deal

jlg1

Hi everyone,

Maybe you could help me with something.

We usually go to the Mortgage Shop every few years to renew our mortgage.

We are now realizing this is costing us as we are charged a set up fee every-time we remortgage usually £999 it seems or thereabouts.

We usually get our mortgage "without proving income" which means having to use the same guy every-time in the Mortgage Shop.

Anyway - we decided to extend our house - 3 bedroom semi detached - added a 2 storey extension to the driveway side - got mortgage for £40,000 on top of our then mortgage 3 years ago) of £67,500 giving us £107,500 to work with.

Upon talking to Halifax recently I am told that we still owe £106,900 at present?

Mortgage offer in July 2008 - 3 year fixed at 6.22 % (just before the collapse of the market in July 2008) anyway fixed rate as I said for 3 years - Term - 40 years.

Then, believe it or not - 6.22% fixed rate was a good offer - repayment.

But My question is upon counting up my monthly payments i.e, 36 months paid back by 31st July 2011 - I see I have paid back £22033.60? and only say max £800 will have actually came off the mortgage?

Does this sound right?

I know obviously at the start there is a pile of interest but £22,000 or so! :mad:- seems really excessive.

I worked out at the start that out of £612 a month £611 was interest.

If anyone could shed some light on this for me - is it the extremely long term i.e, 40 years thats causing some of the problems here?

Any info really appreciated.:)

Also we are thinking of sorting our own mortgage out this time as Halifax told us there may be deals on with no up set up charges - are these "independent" mortgage advice places really trustworthy?

Cheers:D

James

property.advert

£107k at 6.22% over 40 years is £605 a month repayment and £555 interest only. So about £50 off the capital per month. Over 36 months that is £1800 but it is likely the fees were added to the loan resulting in the figure you see now.

jlg1

property.advert wrote: »

£107k at 6.22% over 40 years is £605 a month repayment and £555 interest only. So about £50 off the capital per month. Over 36 months that is £1800 but it is likely the fees were added to the loan resulting in the figure you see now.

Cheers for the quick reply,

Yes at the start I questioned the "612 and was told it was the fee added - I remember at the time of taking it out - it was to be £605 then Halifax told us it was to be £612.85 (which we were not told by the broker) to be exact.

So the £22,000 interest over 3 years sounds right then?

Cheers

James