thought mortgage was paid off but..........

peterth125

We were really excited as the repayment part of our mortgage was due to be paid off June 2013 and only 1 year left on the interest only part. We got a statement yesterday which showed "months left to pay - nil. balance owed - £253 " What has happened ????
The only thing we could think of was that some monies have been allocated to the interest only part by mistake at some point and on checking back over the last year it does appear that the interest only balance has gone down by approx. £350 when I think that figure should always stay the same as we are only paying the interest on it.
Rang Northern Rock today and very helpful lady said she will get accounts to check it.

Just hope someone on here can understand my ramblings and make any other suggestions on what might have happened.

Thanks for reading
P

Thrugelmir

Majority of mortgages carry a final discharge or redemption fee.

This is likely to be why there's a final balance to pay.

peterth125

Thanks for the reply but it is not a redemption fee as the overall mortgage is not paid off until next year

TrickyDicky101

Each mortgage account usually carries such a fee (both my accounts with Nationwide do).