Need fixed rate but bad credit

herbiesjp

If you have a £123k mortgage how much capital do you need to pay back to BM to clear the mortgage?

It is £123k - if you want to leave BM they are not going to say thanks for th 6 months payments, that is all you owe us, now the proprty is yours. No.

You still have £123k minus the capital element of your mortgage payments for 6 months

IT is not to do with your monthly mortgage payments, the overall figure you have to pay back to BM if you wish to leave them.

HTH

nealnomoney

Yes of course i know that after 6 payments the house wouldnt be mine, only in a perfect world. I dont think you understand what i am trying to say.

They are saying that an exit fee would be 5% of capital amount repaid in first year, ie 5% on the 12 payments i made.

I find this very unclear, would i not have some sort of case against them as i didnt fully understand what i was getting into when applying for this mortgage.

nealnomoney

Fees_Free_Mortgage_Advice wrote: »

I'd recommend you seek fees free mortgage advice by a broker on here.

As you can see im already speaking to one :rolleyes:

herbiesjp

nealnomoney wrote: »

Yes of course i know that after 6 payments the house wouldnt be mine, only in a perfect world. I dont think you understand what i am trying to say.

They are saying that an exit fee would be 5% of capital amount repaid in first year, ie 5% on the 12 payments i made.

I find this very unclear, would i not have some sort of case against them as i didnt fully understand what i was getting into when applying for this mortgage.

No - if you did not understand you should have got clarification before signing

I'll try and keep this simple:

If you want to clear the mortgage, how much do you think you have to pay back to BM - forget penalties for the moment

nealnomoney

say 118000

herbiesjp

OK so you have to pay back £118k in capital to BM - correct?

nealnomoney

correct lol

herbiesjp

so in the first year, the 5% applies to the £118k capital that you would need to pay back to leave BM - correct?

nealnomoney

yes, maybe lol

5% of capital amount repaid in first year, *repaid* being the important word here. They are saying repaid, which surely means the money that i have paid them back.

herbiesjp

lol

It sounds like you want to hear what you would like to hear.

But it does not work that way I'm afraid, the 5% is charged on the capital *being repaid*

Not the capital that has *been repaid*

HTH