Repayment of Interest only - Outstanding Balance or Repayment Figure

JackDunstan

Have sold up my property and looking how much I owe to HALIFAX. I took out a INTEREST ONLY mortgage of 250,000 and after two years went on to SVR. Thats it nothing fancy but when I look online using Halifax online banking I see my mortgage balance is 243,797 ! Over the last few years it has been decreasing when looking online.

And the following message...

"Please note that the outstanding balance displayed is not a repayment figure"


I thought I would owe exaclty what I was loaned orginally?

Many thanks

shortchanged_2

So you made some overpayments during the term of the mortgage, did you?

CLAPTON

was the SVR an interest only amount or did you move to a repayment mortgage

did you change your monthly payment?

JackDunstan

thanks for taking an interest.

No over payments. Interest Only (2yrs) them onto SVR (4 yrs)

Direct debit from Halifax Current Account so I had nothing to do with the amounts I paid a month, just paid what I was told to.

"Please note that the outstanding balance displayed is not a repayment figure" this is the statement that suggests others have noticed this and have been thinking wow I had paid of some of the loan on an interest only! Just dont want to get my hopes up when it comes to completion.

shortchanged_2

Well you must have reverted to a repayment mortgage. Did your payments increase by a rather large amount over the past few years?

Either that or they have messed up somewhere.

JackDunstan

nope the amounts jumped with the SVR, I am definetely not repaying as the amounts dont add up, all simple maths.

I'm best to sit tight I guess as I think they have messed up.

Thank you for your time. "Please note that the outstanding balance displayed is not a repayment figure" was what I was really checking to see maybe others had asked the same question about Halifax.

Thrugelmir

JackDunstan wrote: »

Thank you for your time. "Please note that the outstanding balance displayed is not a repayment figure" was what I was really checking to see maybe others had asked the same question about Halifax.

Interest will be charged on the balance once a month in arrears. So the balance you are seeing isn't the amount required to settle the debt.

I would assume that interest will be charged on the last day of each month.

michelle2008

Does Halifax not charge interest daily? And anyway surely this doesn't explain why the amount is less Han 250000?

Thrugelmir

michelle2008 wrote: »

Does Halifax not charge interest daily?

Calculated daily added to the account monthly.

JackDunstan

thats my point does not explain 6,000 pounds less than orginal loan amount..

JackDunstan

..but who am i to argue, no doubt at completion there is a manual process that will pick up this error.... or maybe completion and paying the outstanding mortgage debit on a property is automated and THIS amount will be asked for by the 'computer' to my lawyer to settle...