Confused by mortgage payment, Please help

pauldb_2

As silvercar says, you probably started with a balance of around £40-44k in 2004. We can't quite guess the initial amount as it depends on the variable rates you paid until 2007.

By 2007 you probably owed about £33k, and you remortgaged on an 8 year term with the first years fixed at 6.69%. Try this in a calculator and you should get about £443/month.

On that basis, you'd now owed about £18.5k. But you say you've been overpaying. If that's been the case (£150/month) since 2007 you'd now owe about £10k instead of £18k, so I'd guess you've only been overpaying 1-1.5yrs, or you stared with lower overpayments.

The £443 now looks high because the £15k balance is lowered than anticipated. If you put £18.5k, 6.69%, 4yrs in the calculator you should get the right number. The monthly payment isn't altered for your overpayments: otherwise you wouldn't be shortening the term.

mshulla

hcb42 wrote: »

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.

At the start of the fixed rate in 2007 I owed £38,000 fixed at 6.69% for 5 years.
My last statement showed I now owe £15,000.
£443.00 pm is much higher than the calculaltor suggests I should be paying. The calculator gives a monthly payment of £295.00 pm

I'm still unclear if I am being charged too much interest.

What do you think?

mshulla

pauldb wrote: »

As silvercar says, you probably started with a balance of around £40-44k in 2004. We can't quite guess the initial amount as it depends on the variable rates you paid until 2007.

By 2007 you probably owed about £33k, and you remortgaged on an 8 year term with the first years fixed at 6.69%. Try this in a calculator and you should get about £443/month.

On that basis, you'd now owed about £18.5k. But you say you've been overpaying. If that's been the case (£150/month) since 2007 you'd now owe about £10k instead of £18k, so I'd guess you've only been overpaying 1-1.5yrs, or you stared with lower overpayments.

The £443 now looks high because the £15k balance is lowered than anticipated. If you put £18.5k, 6.69%, 4yrs in the calculator you should get the right number. The monthly payment isn't altered for your overpayments: otherwise you wouldn't be shortening the term.

You are correct, if I use the figures you suggests it comes out @ £440.00 pm.
Not sure what that means though, I will see if I can find some earlier statements. I need to check my payments over the last 4 years.

DannyboyMidlands

£295 + £150 = £445

mshulla

DannyboyMidlands wrote: »

£295 + £150 = £445

Coincidence. The £150.00 is separate.

fiesta04

Have you spoken to your mortgage provider yet? They should be able to tell you all.

mshulla

fiesta04 wrote: »

Have you spoken to your mortgage provider yet? They should be able to tell you all.

No, mainly because I'm sure they will explain it away and I'll be none the wiser.

I have found some of my previous statements and my monthly payments have been falling over the period of the Fixed rate so I am puzzled as some of the posts above seem to say the payments are fixed.
Can someone please confirm the payments look correct or am I paying too much interest?

At the start of the fixed rate in 2007 I owed just under £38,000.00
My mortgage had just under 9 years to run and My monthly payments were £520.00 pm

My 2009 statement shows me owing a little over £26,000.00 and monthly payment of £448.00 pm.

2011, owing just under £15,000.00 my monthly payments are now just under £443.00 pm.

Just £5.00 difference between 2009 and 2011 even though the principle has fallen by almost 50%

Really haven't got much hair left and what little I did have is on the keyboard.

I realise I'm probably been a bit thick but any further assistance would be appreciated.

Thanks.

fiesta04

mshulla, you are like most of when it comes to mortgage payments. To me it seems the overpayments you have made have complicated the issues here. Personally I would wait and see how much you still have left to pay at the end of your fix. If it then appears you have paid more, you will be able claim it back. Anyway I think you have done really well on your progress.

mshulla

Thanks. Just don't like the idea of overpaying. I could be giving them £xxxs and never know.
I hope one of the experts will assist so when I call the mortgage company I'm better armed, or confirm the payments look correct.