Confused by mortgage payment, Please help

mshulla

Hi,

I have a repayment mortgage and took out a 5 year fixed term 4 years ago at 6.69%.
I am looking at my annual mortgage statement and think I'm being grossly overcharged and hope someone can confirm this or put me straight.

The main points are I now owe £15,000.00
Interest Rate 6.69%
Monthly mortgage payment is £443.00

Now when I put the figures in the mortgage calculator it calculates my monthly payment at £295.00, why am I being charged so much more?

I will add in case it's relevent I am overpaying the mortgage by £150.00 pm, to reduce the term.

Any help greatly appreciated.

Thanks.

shortchanged_2

Can you clarify your figures.

How much actually is your mortgage? Is it £15,000 or £150,000.

How long is the term of the mortgage?

mshulla

Hi,

The mortgage is a 25 year one with 5 years remaining. The amount owing is £15,000.00.
It is a repayment mortgage converted from an endowment mortgage about 7 years ago.

shortchanged_2

Are you paying PPI?

mshulla

shortchanged wrote: »

Are you paying PPI?

Yes, I have excluded that from all the quoted figures.

GMS

What does your mortgage offer say?

How much was borrowed and over what term?

Any fees added to the loan?

mshulla

I can see I haven't explained myself fully.
I took out a 25year endowment mortgage 20 years ago.
When the endowment blew up I converted to a repayment but kept the same end date of 25 years, ie year 2015.

4 years ago I changed from a variable rate to a 5 yearfixed rate, fixed at 6.69%.

My annual statement shows I now owe £15,000.00 remaining on my mortgage, the percentage rate is still fixed at 6.69%
My monthly payment on the outstanding £15000 at 6.69% is £443.00 pm

I used the calculator on this site to see how much I should be paying on the amount outstanding at the 6.69%, it came back with a monthly payment of £295.00.
Is that not a valid comparison?
Hope that's clearer, if long winded.:o

fiesta04

Hope I understand correctly...... you changed from an endowment mortgage to repayment in 2004 and your mortgage is to finish in 2015. Therefore your mortgage is over only 11 years. Now check the calculations.

mshulla

fiesta04 wrote: »

Hope I understand correctly...... you changed from an endowment mortgage to repayment in 2004 and your mortgage is to finish in 2015. Therefore your mortgage is over only 11 years. Now check the calculations.

Yes, that's correct but as I only have 5 years remaining on the mortgage and owe £15,000.00 these are the figures I used on the calculator.
Amount owing= £15000
Percentage rate-6.69%
Term remaining =5 years
Is that not valid?

fiesta04

How much did you owe when you went on fixed rate? The payment stays the same over the duration of the fix.

hcb42

it doesnt seem to make sense, no..if you pay £443 over 60 months you are paying way more than £15000.

If you paid the mortgage off tomorrow, £15K is all you owe, is that right?