We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Owe More On Mortgage after 5 years
circa_dia
Posts: 1 Newbie
We took out a mortgage in 2006 for a total of 225000 over 25yrs. We gave a deposit of around 60,000 (can't remember the exact figure) from the sale of our previous house. (So the mortgage was around 165,000)
The monthly payments are a stretch, so we recently started thinking about looking for a better deal. We asked for a settlement figure and have been told the balance is now 178,000.
We haven't missed a single payment or taken any payment holidays or anything. It was a shock to realise we haven't even dented the original figure and still supposedly owe more than we borrowed.
After paying 1200 per month for the past five years, can this be right?!
The monthly payments are a stretch, so we recently started thinking about looking for a better deal. We asked for a settlement figure and have been told the balance is now 178,000.
We haven't missed a single payment or taken any payment holidays or anything. It was a shock to realise we haven't even dented the original figure and still supposedly owe more than we borrowed.
After paying 1200 per month for the past five years, can this be right?!
0
Comments
-
Was it interest + capital repayment?
Does seem strange, have you asked them why its so?0 -
Early repayment charge is the most likely answer.
Fees. Arrears. Interest only.
All possible reasons. Have you asked your lender?0 -
Early repayment charge after 5 years of a mortgage?
I suppose if it were a 10 year fix that sounds reasonable but i dont think there are too many 10 year fixes being sold.
the OP also said they have made every payment.
It doesnt seem correct, thats not to say it isnt but paying off £60k at outset and even then paying interest only it would seem strange that there is another £10k outstanding.
I would ask what the balance was as it stands without any early repayment charges, you need to speak to the lender really as its difficult for us to give a reason, maybe also get any paperwork (Key Facts document, if you went via a mortgage advisor then a suitability letter should be there too) have a look over the early repayment charges section and how long your tied into the deal for.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I would alos ask for a statement of account so that you can track where the charges have come from and double check?0
-
Did you mean we paid 225 for a house.
get out your mortgage agreement and look back at the last 5 annual statements.
what about the fees stamp duty etc how were they paid?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.5K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.5K Spending & Discounts
- 245.5K Work, Benefits & Business
- 601.4K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards