Settlement Figure

Akira

Hello all, I was wondering if someone here could give me some info/advise, please:); we have a mortgage of £280.000 and are fortunate enough to have received some inheritance and want to pay off the mortgage. Would I be able to ask for a settlement figure? Or it depends of the Company? The mortgage is 6 years old, repayment mortgage. I know I can call on Tuesday but really wanted to know now:D Thank you so much:)

CLAPTON

Akira wrote: »

Hello all, I was wondering if someone here could give me some info/advise, please:); we have a mortgage of £280.000 and are fortunate enough to have received some inheritance and want to pay off the mortgage. Would I be able to ask for a settlement figure? Or it depends of the Company? The mortgage is 6 years old, repayment mortgage. I know I can call on Tuesday but really wanted to know now:D Thank you so much:)

the settlement figure would be the amount outstanding and any interest that has accrued usually to a specific date in 3/4 weeks

Akira

Hello, many thanks, but do you mean I'd have to pay more than we owe??
Sorry for the ignorance:o

dimbo61

Each day more interest will be added so your lender may have to work out the figures.
Will you have to pay any Early Repayment Charges ?
Are you in a fixed rate period ?
When you get the money pay a lump sum off and then contact the lender a few days later to find out if you have any interest left to pay

CLAPTON

when you ask for a settlement figure they will give you a figure and a pay by date (usually a few week later to give you time to actually pay)

so you pay the balance plus the interest and closure fees if applicable (they usually are)

Akira

Hello, thank you both, but I thought if you pay early you'd pay less than the balance? I mean, the interest that we'd have to pay for the remaining years would be discounted if we pay early? No? The mortgage is not a fixed rate. Or, do you mean WE would have to pay extra(instead of getting a discount) for the interest due for the remaining years? So, we have 12 years left on the mortgage, and if we want to clear that early we'd have to pay the bank?? I hope not!!! Sorry again for all the questions:o:)

sheilds

Hi there,

If your mortgage is £280,000 ,you will pay that plus however many days of interest owed that month (plus any exit charges)

Your mortgage interest is added monthly-not front loaded so there won't be a discounted early settlement amount as there would be with a front loaded interest loan for instance.

You are in a very fortunate position as this will save you years of interest as well as being Mortgage free.

Best of Luck.
S.

CLAPTON

Akira wrote: »

Hello, thank you both, but I thought if you pay early you'd pay less than the balance? I mean, the interest that we'd have to pay for the remaining years would be discounted if we pay early? No? The mortgage is not a fixed rate. Or, do you mean WE would have to pay extra(instead of getting a discount) for the interest due for the remaining years? So, we have 12 years left on the mortgage, and if we want to clear that early we'd have to pay the bank?? I hope not!!! Sorry again for all the questions:o:)

with a mortgage you borrow a certain amount of money often referred to as the capital.

each month you make a repayment : this covers all the interest due that month and a little of the capital.

so now the 'capital' outstanding is a less than you first borrowed

so when you get a settlement figure that will include
- the capital outstanding
- about a months interest
-any fees

but you do no pay all the 'future ' interest so you are saving a lot of future interest

Akira

I understand now, thank you all ever so much for your help:) and shields, thank you:)