Difference between?

EvaCustard

Does anyone know what the difference is between the true balance of a mortgage and the redemption figure?

I'm a little confused.

Thanks

kingstreet

Any penalties which might apply on early repayment, any discharge fee payable and any interest due from the last payment date to the redemption date.

Thrugelmir

EvaCustard wrote: »

Does anyone know what the difference is between the true balance of a mortgage and the redemption figure?

I'm a little confused.

Thanks

Interest is normally calculated once a month in arrears. So if you were to view your mortgage balance on line, as one can do with a bank current account. The amount displayed may well be lower than the amount required to redeem the mortgage. As there's accrued interest to be added to that balance as well.

EvaCustard

Thanks to you both. I'd guessed that but wasn't convinced I'd guessed right.