Anyone understand these mortgage figures?

Morgage_Confused

Can anyone understand these Barclays mortgage figures...I have raised a complaint with them but its taken 6 weeks so far for them to explain this to me with no result so far. I thought I might get a quicker answer here.

According to Barclays......
Outstanding mortgage £134000
Rate 2.68%
Term 16 years
Contractural payments £922


Now I have made many overpayments over the years, some large but most about £100 per month.
I work out my contractural payments to be closer to £858 and called Barclays to ask them to explain. They diddnt understand either and agreed with me that £858 is about right. They told me they would send out a letter to explain whats going on.

One thing they said was "there is a pre payment balance of £9000 that stands on the account". They couldent explain this either and I suspect this has something to do with the incorrect figures and maybe this is where a lot of my overpayments have gone.

So basically have I been paying too much for my mortgage? Am I financially out of pocket?

Thanks guys.

ACG

have a read up on offset mortgages.
I suspect that £9k is how much you have overpaid by. Your not paying interest on that £9k (I dont think) and so you are no worse off.

Its a little worrying Woolwich/Barclays struggled to explain it though.

Fizzy11

Don't you just love the attitude of Barclays?

Thrugelmir

Fizzy11 wrote: »

Don't you just love the attitude of Barclays?

What have Barclays done ?

Thrugelmir

Morgage_Confused wrote: »

I work out my contractural payments to be closer to £858 and called Barclays to ask them to explain. They diddnt understand either and agreed with me that £858 is about right. They told me they would send out a letter to explain whats going on.

Have you requested a change in mortgage term i.e. a contractual change to reduce it? Or asked Barclays to revise your monthly direct debit in light of the overpayments.

If not then Barclays will only recalculate your monthly payment at the next change in interest rate.

If you are overpaying then by default your mortgage will end earlier.

Morgage_Confused

No ACG.....this is my mortgage pre switch over to the offset. They have given me a new and correct contractural figure on the offsett. The new mortgage offer is all fine.

My issue is the mortgage before this switch over. Their contractural payments have been wrong for about 2 years. Every time I ring them I get the Bangalore call center in India who are useless. After being on the phone for ages explaining the problem to the Indian call center it finally gets escalated higher and someone who speaks good English speaks and basically agrees the contractural payments are wrong and cant explain it.

Then I was told about this "9k pre payment balance" which had built up and also cant be explained. They said a letter would be written to explain and I basically got nothing back from them.

As it seems nobody can explain this I think I need to persist further with them. I get the idea they have held on to 9k of overpayments and not used them against the mortgage over a period of approx 2 years?

Morgage_Confused

No I havent changed term. Also everytime I made larger overpayments Barclays reduced my monthly payments. But this was in the beginning of the mortgage. I always put the payments up again afterwards. My concern is over the last couple of years the contractural paymets were not recalculated and now they say I have this "pre payment balance of 9k"

Thrugelmir wrote: »

Have you requested a change in mortgage term i.e. a contractual change to reduce it? Or asked Barclays to revise your monthly direct debit in light of the overpayments.

If not then Barclays will only recalculate your monthly payment at the next change in interest rate.

If you are overpaying then by default your mortgage will end earlier.

ACG

I dont think there is anything wrong, I just think your not getting it explained in a way you understand or at all - thats not your fault but I think you will find everything is as it should be once you get it explained to you.

Basically your £9k is sat in a pot, so it has not come off the balance (although you are not paying interest on it). That means your contractual payments have remained the same and the term will end up being less. ie you are over paying to reduce the term rather than the monthly repayments.

Thats what I think anyway.

getmore4less

What do the last 5 annual statements say

A single statement is not enough to make any comment than 859 would be about right for the 16y term .

it may take bit of working out but is relatively simple to track your payments/ballance.

The monthly payment does not change with overpayments unless that is the default on your account, Barclays also have an option that you payment never goes down, only up.

If you moved to an offset you get monthly statements and it is really easy to track what is going on.

getmore4less

Check your mortgage current account, that MAY be what they are talking about for the £9k if that has an OD limit that could be your overpayments, they have come off the mortgage but you can borrow back.

Barclay staff don't all understand how their mortgages work.

Morgage_Confused

No its not the overdraft limit on the mortgage current account, I already asked them about that and its not related. I also asked if I could claw back the 9k to basically put in my new mortgage offset account to which they also said no. But I was told I could just not pay the mortgage and my payments would be taken out of that 9k "pre payment balance"....very confusing....they have been trying to ring me today to discuss this so maybe they have an answer.

If I add 9k onto my mortgage balance it does make the contractural payments similar to what Barclays says they should be. Does that make any sense.