PLEASE help me with my mortgage I am confused!!

Greenst

OK, my deal is coming to an end, I went to see a mortgage advisor about a month ago now and have since been looking at the options available, but what I don't understand is the figures the bank have given me on what I still owe.

I have been making small overpayments since last April, they started at £30pm then I upped it to £60pm in August.
My original mortgage was on a 2 year deal starting April 2010 and was for £79469 interest rate of 3.65%

When I put that figure in the mortgage calculator on here it says without overpayments my mortgage should now be down to £71205, when I called the bank yesterday to discuss things they said my balance is £72196!!

If I put my over payments into the calculator on here, which is hard because I am looking at a 2 year mortgage and for the first year I didn't do any OPs and in the second year I started as I said on £30 then upped it to £60, even if I try and average it out at £20pm it says the mortgage with OPs should now be at £70706.

I am a bit disappointed as I was working on the assumption that I would be nearer to £70k by now.

Can anyone tell me how this is worked out by the bank? How come the mortgage calculator is out on here by 2K? Is there a better more accurate mortgage calculator on another site I can use? Am I getting this all wrong??!!!!:(
Does any of the above make any sense to anyone??!!

Thanks in advance for any help you can give me! I am not the world's best at maths so make it simple for me please!

Oh meant to say the mortgage is over 13 years from now, is it better that I maybe reduce the term this time round will that help things?

ACG

There could be a number of different reasons....does your mortgage allow for overpayments? If it doesnt then you could have been charged a fee for those overpayments making them pointless. If it does allow then, how much does it allow?...you could have been paying over that amount and then the fees could have kicked in.

Also, how is interest charged on your mortgage? Daily/Monthly? How is it charged on the mortgage calculator.

Im all out of ideas now if its none of those but if i think of anything else ill post them.

jayencee

as your deal doesn't end until April, have they included an early redemption fee?

getmore4less

whats the followon rate for the current deal?

Greenst

Well I hope it doesn't include early redemption as the new deal will start when the old one finishes!
Don't know when interest is calculated assume that will be in the small print of my original offer?
Follow on rate is standard variable at 4%.
I had to call the bank to arrange overpayments, there was no mention of a fee, in fact the deal said that overpayments up to 10% can be made in any year.
Any other details I can't say as at work at moment and all the paperwork is at home.
Hope it all hasn't been in vain my over payments

TrickyDicky101

Did you have a mortgage fee added on to your mortgage at the start? What is the total value of overpayments you have made?

Greenst

Ahh yes I had to add on a £1000 fee Maybe that's it?
So I assume paying overpayments has been a complete waste of time then? :mad:

This time round the 'product' has a £499 fee which I will pay up front, I just couldn't afford it last time round.

Greenst

Anyone???

Have my over payments been a complete waste of time? I thougjt over paying was a good thing to do and the fee was just part of the mortgage?

HappyMJ

Greenst wrote: »

Anyone???

Have my over payments been a complete waste of time? I thougjt over paying was a good thing to do and the fee was just part of the mortgage?

No but remortgaging in my opinion was. Why not just allow the mortgage to revert to standard variable rate of 4% rather than paying £499 plus to fix at whatever the current fixed rates are?

sterlingstash

Your overpayments definitely won;t have been a waste of time. They will have chipped away at the remaining balance. Looks like you were just overlooking the mortgage fee which was added to the balance. Try the calcs again with that included.

Greenst

Sorry to sound dense, so is the outstanding balance that the bank have told me not including the £1000 fee? I assumed as that was added to the mortgage then that was the outstanding balance total, incl fee.

The next deal is 2.45% rather than the current 3.65% I thought that even with the £499 fee it would work out better in the long run although only a 2 year deal.
Am I better then maybe trying for a 5 year deal with no charges, although the interest rates are much higher as far as I can see.

Think I will have to go back to the drawing board on this one again All I want to do is pay my mortgage off ASAP, I thought going with a lower interest rate, therefore lower monthly payments I could overpay more and reduce it quickly, although I see now that having to pay a fee will cancel out at least 8 months of my overpayments