Mortgage redemption question

JimmyTheWig

TrickyDicky101 wrote: »

Would suggest otherwise...

Quite possibly, and until the OP confirms then we won't know.

Maybe there is more than exactly 6 years to go - maybe there is more like 6 years 8 months to go? Maybe the OP believes there is exactly 6 years to go because when they divide their balance (that they believe includes future interest) by their monthly repayment they get 72?

But what I find hard to believe is...
* The people the OP spoke to were shown the total of all planned future payments on their screen.
* Both people the OP spoke to calculated themselves the total of all planned future payments.
Which means there must be another explanation for the confusion.

Goldiegirl

Road_Hog wrote: »

You are missing the point, your mortgage statement is based on a full 25 year term, i.e. you pay full interest for 25 years, with a mixture of capital and interest payments. I am quite happy with the statement. The point is, if I redeem early, then the amount should be less due to 6 years less interest payments.

http://www.121finance4u.co.uk/finance/loans/what-if-i-want-to-pay-off-my-loan-early/

Your mortgage statement nothing to do with being based on a 25 year term

The statement is a record of the activity on your mortgage over the previous 12 month period.

It should show the amount outstanding on the mortgage at the start of the 12 month period, all the credits your have made, the interest charged in the 12 months and any other transactions that have taken place, like fees being debited. Then at the end of the statement it would give the amount outstanding on the mortgage at the end of the period.

So, if a person applied for a redemption figure a few months after receiving the statement, it is expected that the figure will be very similar to the one shown on the statement. It is likely to be a bit less than the figure on the statement, as some capital will have been repaid, but it's not going to be thousands less.

You said you were happy with your mortgage statement, so you must have been happy with the figure that they said was outstanding on the mortgage.

So when you now apply for a redemption statement, if the figure they quote is in the region of what was outstanding when you had your statement ( that you were happy with) then I feel it is reasonable to accept that that it is correct.

The figure will not be less, as you seem to expect due to paying the mortgage off early. Interest is only charged to the day the mortgage is redeemed. No interest has yet been charged for a date in the future, so there is no interest to reduce.

Thrugelmir

Road_Hog wrote: »

Sorry Thrugs, I don't wish to be rude, I know you are a long term member on MSE and I've read many of your posts, but have you actually bothered to read any of my posts, because everything you've asked is fully explained in my posts on this subject.

Yes I did your posts. Unlike you I don't have the benefit of sight of your annual mortgage statements which should clear a pretty clear picture of the actual current position. As from the information you've provided something is amiss. At the current time you are placing the discrepancy at the door of the lender. When in fact there's probably a very simple explanation.