Mortgage Problem

DeeFer

Thanks d70cw6. You're right, I would expect to see a similar reduction in my monthly repayments.

Thanks also Frazell. Your calculation gives a monthly repayment reduction of £16. That is more in line with what I was expecting.

I have emailed the bank and asked for explanations but have not had a satisfactory reply as yet. I will get onto them and give them some more grief.

Thrugelmir

DeeFer wrote: »

I have emailed the bank and asked for explanations but have not had a satisfactory reply as yet. I will get onto them and give them some more grief.

I'm sure that their systems have calculated the correct figures. Can you view your mortgage account online?

DeeFer

Thrugelmir wrote: »

I'm sure that their systems have calculated the correct figures. Can you view your mortgage account online?

I can't view it online. I am only going on the figures they have sent me after the over-payment.

DeeFer

Hi again.

I still haven't had a satisfactory explanation from the mortgage company so I called them.

I spoke to a lady who basically said, "the figures are correct but I can't explain why. I've never been asked this question before. This will take a lot of time and man hours to get the answer. The MD is aware but he is away for a couple of weeks. We will try and get an answer".

I still think there is something wrong here. I don't know what to try next.

Anyone got any suggestions?

Thanks in advance.

TrickyDicky101

I know it won't be much consolation, but you should be able to confirm the amounts paid against interest and capital from your annual statement (which, if HSBC works as NationWide (my lender) do will arrive in early January for the period since inception up to 31st Dec) and be able to check this againt your own calculations (eg in a spreadsheet).


This is what I do for my mortgage. It should reassure you that whilst your monthly amounts may not tie in with your expectations, you aren't actually losing any money as a result (just repaying a bit faster).

DeeFer

TrickyDicky101 wrote: »

This is what I do for my mortgage. It should reassure you that whilst your monthly amounts may not tie in with your expectations, you aren't actually losing any money as a result (just repaying a bit faster).

Thanks for your input TrickyDicky.

My whole point is that I think I AM losing money. This is why I'm asking them to clarify their calculations.

ViolaLass

DeeFer wrote: »

I spoke to a lady who basically said, "the figures are correct but I can't explain why. I've never been asked this question before. This will take a lot of time and man hours to get the answer. The MD is aware but he is away for a couple of weeks. We will try and get an answer".

Did they say they would get back to you? By when? I would pin them down to a date and then put in a complaint if they miss it. I certainly wouldn't be happy being told that they don't know why they've done what they've done!

DeeFer

ViolaLass wrote: »

Did they say they would get back to you? By when? I would pin them down to a date and then put in a complaint if they miss it. I certainly wouldn't be happy being told that they don't know why they've done what they've done!

They didn't give a date. The lady was pretty vague about how long the CEO would be away and kept saying that it would take "lots of man hours" to get this explained.

AnotherJoe

I'm doing a double take here. What sort of mortgage lender needs the CEO to calculate interest and repayment figures and can't do it if he's on holiday?! ?
Was there a free Mickey Mouse watch with each mortgage? Who is the lender? Something very strange here.

getmore4less

DeeFer wrote: »

Hi all.

I took out a mortgage starting on 1st Jul 16 for 100k.

The mortgage company are charging me £300.77 initial interest then £1065.27 per month for 10 years.

100k over 10years @ 4.99% is £1060.17pm

I would query that to start with

exactly when does the term end? it may be you are a month out if the first full payment is 1aug that would be 119 payments on £100k and that would be about £1067pm 1065pm leaves around £300 so that would match



So I'm paying back 300.77 + (1,065.27 x 120) which gives 128,133.17

I made an over-payment at the beginning of the month for 1,500 and the mortgage sent me a new repayment figure of 1,055.94 starting on Sep 1st.

So, in total, I'm now paying 300.77 + (1,065.27 x 2) + (1,055.94 x 118) + 1,500

are you sure you have(will) made 2 payments at the old rate?

Which gives 128,532.23

I know I haven't allowed for the interest payments decreasing over time but surely the total repayment should have reduced because of the over-payment and not increased.

Am I missing something?

DeeFer

£1056pm matches £98500 over 119 months with £300 over.

Could be you are only paying over 119 months and the recalc was done before the month payment went through.

both payments seem about right for 119 months not 120 months.

Should come out in the wash as long as they charge interest daily.