Wow all this is confusing!

sparkle03

Hi Guys

Wow I hate banks and Building Societys!

Gosh im such an idiot, in the process of selling and moving and i had a mortgage statement from december last year, stating that i owed £55,472.85, obviously been paying the mortgage all of this year so i thought right were going to owe them less than £55,000 9 months later.

Got the redemption papers yesterday and we now owe them more than what we owed in December last year!

I am really suprised, never leaving anything to an advisor again. I feel so ripped off! Im making sure I do It all right this time, how can banks and building societys sleep at night lol!

x_Wilco_x

Do the redemption papers include the exit fees and any early re-payment charges? What you owe on your mortgage and what it will cost you to redeem will be 2 different figures depending on above...

dunstonh

Are you on an annually changing payment?

I am really suprised, never leaving anything to an advisor again. I feel so ripped off! Im making sure I do It all right this time, how can banks and building societys sleep at night lol!

You clearly dont understand mortgages and doing it without an adviser could cost you far more than without.

sparkle03

dunstonh wrote: »

Are you on an annually changing payment?



You clearly dont understand mortgages and doing it without an adviser could cost you far more than without.

Theres no need to be rude, i may not understand, thats why i sought and told an advisor of what i needed and what my plans were and he was supposed to sort me out with the best product. I thought that would have been the most sensible thing to do.

I wasnt hitting out at all financial advisors just the person i had hired.
It doesnt say anything anywhere about an annually changing payment, on any of my paperwork.

dmg24

sparkle,

You most likely have got the best product that was available. However, mortgages are pretty complex things, and as dunstonh said, you would have probably ended up with even more charges had you sorted things off your own back.

If you really do think that you were missold your mortgage product, then by all means ask the advisor for an explanation. However, before you do this, have a read through of the Key Facts Illustration that you would have been given when deciding whether to take out the mortgage. I imagine that you will find that all the charges are detailed in there.

sparkle03

I am sorry, I know I probably dont understand everything that I should and I know I shouldnt be making excuses, but this was my first time doing thing and I am currently doing it for the second time and Im just 21 so theres alot to take in.

I just had this in front of me

quote from statement

if you were t have repaid your mortgage on 31 December 2006, the full amount you'd need to do this , including any associated charges ( such as a repayment fee) would have been : £55,472.85

Then the other day after paying the mortgage all year

Amount to pay back (redeem) your mortgage £55,869.50

I was just a little shocked thats all.

Thanks to everyone who replied.

Rick62

Is your mortgage interest only or repayment? If it has not gone down suggests interest only.

sparkle03

No it is a repayment mortgage!

Thanks

dwsjarcmcd

If you are not on a fixed rate then I suspect that you must be on an annual review of your payments. This means that each year, your lender fixes your payment at a date in time, say December 06. This is great if interest rates decrease as you are effectively overpaying but as rates have increased, then your not paying enough to cover the increased interest. If this is the case, then your lender hasn't ripped you off, remember they are paying that increased interest rate.

If you have a fixed rate, then disregard!!

David

sparkle03

Hi David,

Thanks for your reply.

It is a fixed rate mortgage!