miscalculation of early repayment fees?

jebervic

I have a 5 year fixed mortgage repayment mortgage with the halifax, the fixed rate penalty period ends in 2018, the outstanding amount was 125k on wednesday MORNING, I repaid 121, 500 on Wednesday evening after the sale of a BTL, mt mortgage terms state that I need to pay 4% of any amount over 10% of the balance. so I expected a repayment penalty of 4600k, however I called this morning and was given a redemption figure of around £3600, with a fine/penalty of £136 for early repayment, I have be assured (three times)that the figure of £3600 is correct as a redemption figure, I have sent this amount today by Halifax faster payment.

is that it? is my mortgage paid? or will they come back for me?

Thrugelmir

I would expect an ERC to be charged.

amnblog

A confusing initial post that needs clarification?

jebervic

They said that £136 for ERC

What needs clarification in my initial post?

I have called 3 times and asked for a redemption figure, all 3 times they have given the same amount.

getmore4less

jebervic wrote: »

They said that £136 for ERC

What needs clarification in my initial post?

I have called 3 times and asked for a redemption figure, all 3 times they have given the same amount.

I would have though that is the redemtion figure for your current outstanding loan.

There is probably an ERC charge hanging about somewhere for the other payment.

jebervic

getmore4less wrote: »

I would have though that is the redemtion figure for your current outstanding loan.

There is probably an ERC charge hanging about somewhere for the other payment.

Thats what I thought, so how will that work? so not mortgage free quite yet then, even though I ASKED 3 PEOPLE IF that was a full and final figure:mad:

getmore4less

BUt thye may not see that on the system that give the settlement figure.

Check how the penalty for overpayments happen is it added to the mortgage and when, or is it a separate payment.

Something I might have checked before making the payment.

jebervic

getmore4less wrote: »

BUt thye may not see that on the system that give the settlement figure.

Check how the penalty for overpayments happen is it added to the mortgage and when, or is it a separate payment.

Something I might have checked before making the payment.

worst case scenerio is that I still owe money for an ERC

Thrugelmir

jebervic wrote: »

Thats what I thought, so how will that work? so not mortgage free quite yet then, even though I ASKED 3 PEOPLE IF that was a full and final figure:mad:

Perhaps the charge isn't yet showing on your account. You only paid the cash across Wednesday evening. Will require manual processing to be charged to the account.

You know the charge exists and what it is. Therefore have a good indication as to the redemptiion figure. So unsure why you are so agitated for the sake of a couple of days.

jebervic

But to be fair, I was told it was a redemption figure and that If I paid the £3600 my account would be closed

kingstreet

Are you sure the ERP hasn't reduced to 3% from 4% when you crossed an anniversary.

Eg 5%, 4%, 3%, 2% 1% in years 1, 2, 3, 4, 5 etc.

If repaying a mortgage in full, you should request a written redemption statement for repayment on a particular date in the future. That will also include a daily rate for the seven days after, so you have a bit of headroom if you can't do it on that date after all.