Confused by mortgage payment, Please help

diable

Thats a high %

hcb42

something's odd with both the rate and the payment

fiesta04

The answers are yes and yes, but you need to understand that the repayment figure was for what you owed in 2007. How much did you owe at this time? It will be more than £15,000 but you have not only been paying interest but capital too. Hopefully this makes it clearer.

sitesafe

I was questioning something like this earlier. (but maybe I'm completely wrong in my reply to you !)

Had some good replies on this thread:


https://forums.moneysavingexpert.com/discussion/3268100=


I think that if you still have a year to go on the fixed rate deal that the payments stay the same regardless of how much you've paid off. It's not until the fixed rate term is up that new calculations can be made based on the remaining balance (which will have taken into account the overpayments) so in a year's time in your case - if I'm understanding you right and if I've understood the feedback from others on my question.

hcb42

It doesnt add up, there should be less interest towards the end not more.

To get to a payment like that interest rate, the OP could potentially have taken out an 8 yr mortgage (in 2007...) for about £32K
It doesnt then follow that they have paid off 17K in 4 years but now will only pay off £15K in the next 4.

Will need Op for more details I guess. OP have you ever agreed an overpayment with them. It might be worth a phone call for explanation, unless something else is going on.

silvercar

If you had converted about £41,500 in 2004 on a repayment basis at 6.69% for 11 years then the repayments would be about £444.

The fact that £15,000 is left owing doesn't affect the calculation as the calculation would have been made to maintain the same mortgage payment over the whole term.

mshulla

fiesta04 wrote: »

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

Don't think that's correct. My monthly payments have fallen annually I assume due to the overpayments.

At the start of the fixed rate I owed just under £38,000.

mshulla

hcb42 wrote: »

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?

Yes, at the date of the last statement £15,000 is all I owe. There would be an early payment charge of course.

mshulla

diable wrote: »

Thats a high %

Just my luck I fixed at the wrong time, I thought base rates were going to rise:o

mshulla

fiesta04 wrote: »

The answers are yes and yes, but you need to understand that the repayment figure was for what you owed in 2007. How much did you owe at this time? It will be more than £15,000 but you have not only been paying interest but capital too. Hopefully this makes it clearer.

At the start of the fix rate I owed just under £38,000.