Mortgage calculation

philip

I may be being a bit stupid, but only owe £1000 on my mortgage with 6yrs and 6 months to go, after recently making further capital repayments. I am reluctant to pay it off fully as Barclays want £250 early repayment fees.
My mortgage rate is .69% and Barclays have just sent me a new statement showing the repayments at £22 minutes monthly, which I can't reconcile.
Before I phone Barclays at their Indian call centre where I will probably get no sense can someone tell me if that figure is correct?
Thanks

kingstreet

That sounds like a deed release/discharge fee which is payable for closing down the account and removing the charge over the property regardless of when repayment takes place.

You may therefore be deferring repayment unnecessarily as it can't be avoided.

philip

Thanks for the reply.
I am not sure I made myself clear.
By my calculations my monthly payments should be £14, using the online mortgage calculator. Not the £22 they are quoting and was whether not if there is a hidden charge or I have calculated wrongly.
I will definitely pay the £250 I know about if there is, and finish the mortgage off.

kingstreet

I mentioned this only because of the "early" in your opening post.

Someone else will be along with a calculator to compare your figures, I'm sure.

TrickyDicky101

I agree with your calculation on the basis of the figures quoted.

I make it you will pay off the balance in just under 4 years if set at £22 pm

lucie_1985

I make it to be £13.11 given the figures you've quoted

lucie_1985

Is it possible you have an insurance product running alongside the mortgage?

amnblog

With £6.9 a year interest to pay - the cost of the call will probably outrun any benefit from it.

philip

Thanx for all your replies. You have confirmed my suspicions that something is not quite right. I will be calling India(wish me luck) on Monday and will post back here.
Ps I am not aware on any insurances...but one never knows with banks!

philip

Just an update as promised.
Phoned Barclays Indian call centre, where it took some moments for the call handler to understand my request that I wanted my new monthly payments rechecked.
After holding on for another 10 mins or so she came back and rather sheepishly admitted that they had got the repayments wrong, and they were as I had suspected £12 odd, not £23.
Ok this may seem trivial but it is of concern that mortgage repayments can be wrong and it may be a lesson for all of us to check the banks figures from time to time.In my case it would have cost me £250 as I would have incurred early repayments charges as the actual interest part of the calculation was right.
Thanks again for the replies.

Lifes_Grand_Plan

philip wrote: »

Just an update as promised.
Phoned Barclays Indian call centre, where it took some moments for the call handler to understand my request that I wanted my new monthly payments rechecked.
After holding on for another 10 mins or so she came back and rather sheepishly admitted that they had got the repayments wrong, and they were as I had suspected £12 odd, not £23.
Ok this may seem trivial but it is of concern that mortgage repayments can be wrong and it may be a lesson for all of us to check the banks figures from time to time.In my case it would have cost me £250 as I would have incurred early repayments charges as the actual interest part of the calculation was right.
Thanks again for the replies.

If I was you, i'd be putting a complaint in about that. Its shocking (although perhaps not surprising) that the bank could get that so wrong. I would want them to be conducting a review of how it happened to make sure it doesn't happen again to you or anyone else..... others might not have been so sharp to notice it.

You never know, they might pay you a little sweetener to shut you up over it