Howvto ensure my mortgage is managed effectively

peter2407

Having previously had a business go bust and all that that means, 10 years ago I took out a mortgage with GMAC which is a Libor linked product. Generally all payments have been made on time (2 exceptions I can think of) but I am concerned that the repayment level is low ie after 10 years of a 25 year period I have only repaid c. £70k of £280k having put down a deposit of c. £100k. Is there a way I can have the mortgage audited to make sure all is a per the agreement?

ACG

I have just put figures in an amortization calculator - obviously I do not know what rates you had and when, but in figures it has come back with is around £200k.

Im sure its probably not been exactly 10 years, and you have 2 late payments but its not a million miles out.

You can ask the lender to give you a breakdown but it is normal that you pay less off the balance in the early years and over time that increases.

peter2407

ACG - apologies if this is a stupid question but is your amortisor saying that the balance should be c.£200k, which it roughly is, or that £200k should have been paid off by now? And thanks for the quick response.

Annisele

Those figures look fairly normal to me. Try playing with some different interest rates in http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator , and you'll see the effect.

If the interest rate had been 0%, you'd have paid back 10/25ths after 10 years. The higher the interest rate, the less you'll have paid back.

ACG

http://www.amortization-calc.com/

Its saying the balance should be around £200k.