Can some one please tell me if I am paying too much?

MissOptimistic

Hi there
I have a mortgage of £212, 329.71 which is interest only with the Halifax. My interest rate is 3.5%
I have just been trying to work out how much it will go up for each quarter percent, but I have tried 2 different mortgage calculators that both say I should be paying about £619 at present, I'm not - my monthly interest payment is £671.22
Can anyone cleverer than me tell me why this is, have the Halifax made a mistake and been overcharging me?
Many Thanks

somethingcorporate

I agree with your calculation - get on to the halifax and find out what is going on!

lvm

I make it £619 too.

Have you ever overpaid your mortgage which would have reduced balance but kept repayments the same?

Or did you receive the goodwill credit hich brought balance down?

If you have online banking, does it say "Interest only"? When I started overpaying, it changed to "part interest/part repayment".

I'm sure they will tell you if you give them a call - they always seem to be quite pleasant when I've spoken to them.

originalmiscellany

It's not a case is it, where you've only just got a new mortgage and there's an extended mortgage in the first month (rolling over say a few days and the full month) hence the higher figure?

Soot2006

And you're sure you didn't have an arrangement fee or anything like that added to the total mortgage?

MissOptimistic

Hi - No it isn't a new mortgage or anything like that, although they have just agreed to consolidate some arrears we had (add them onto the mortgage balance) - We have been given the new figure of £671 per month which has gone up from £660 that we were paying. It says on the paperwork £212k is now the balance, that the interest rate is 3.5% and the interest is now £671 per month - puzzled

Thrugelmir

If you haven't been meeting your mortgage payments in full. Then the balance would have been increasing every month. The arrears wouldn't have been kept seperately. So haven't been consolidated as such.

Is possible that the the new payment includes an element to start paying off the arrears. As your balance still exceeds that of your original mortgage advance.

MissOptimistic

Thrugelmir wrote: »

If you haven't been meeting your mortgage payments in full. Then the balance would have been increasing every month. The arrears wouldn't have been kept seperately. So haven't been consolidated as such.

Is possible that the the new payment includes an element to start paying off the arrears. As your balance still exceeds that of your original mortgage advance.

Hi there thanks, but that is not the case - the arrears amount was always kept seperate from the outstanding mortgage balance, the £660 was the interest on the original balance and the arrears were held seperately. They wrote to us last week saying that the arrears had now been consolidated onto the mortgage balance meaning our mortgage has gone up by a couple of thousand, even so, now with a new balance of £212K the payment shouldn't be as high as £671 - it should still only be £619 at 3.5%

MissOptimistic

MEant to add, that the balance wasn't increasing every month, when we ran the arrears up (over a year ago) they were held seperate and we were paying a small amount off them each month (in addition to the £660) but they weren't charging any interest on the arrears. Think that is why they have now added arrears onto the balance, so that they can now get interest on the full amount

kingstreet

What's the remaining term of the mortgage? ARe the arrears repayable over a shorter period?

Is it possible the consolidated arrears are being repaid each month to the tune of the extra £53 while the interest on the total balance is £618?