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Mortgage Help - Early Redemption
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Jdavis
Posts: 6 Forumite
Hi everyone,
We are struggling to understand the redemption figure on our mortgage;
The mortgage was started 01/2016 for £49600 at a rate of 8.64% (Poor credit) for a 23 yr term.
Our rate has now dropped to 7.1% (still extremely high).
We are looking at selling our home and have asked for an early redemption figure.
They have come back with £41400 to redeem.
I can't get my head around the fact that after 10 years of payments I have only paid £8000 of the balance. Looking at the calculators online i get figures between £35000 and £37000 as being the amount outstanding at the end of the current month.
Could someone please try and explain the difference?
thanks in advance
John
We are struggling to understand the redemption figure on our mortgage;
The mortgage was started 01/2016 for £49600 at a rate of 8.64% (Poor credit) for a 23 yr term.
Our rate has now dropped to 7.1% (still extremely high).
We are looking at selling our home and have asked for an early redemption figure.
They have come back with £41400 to redeem.
I can't get my head around the fact that after 10 years of payments I have only paid £8000 of the balance. Looking at the calculators online i get figures between £35000 and £37000 as being the amount outstanding at the end of the current month.
Could someone please try and explain the difference?
thanks in advance
John
0
Comments
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What have your annual mortgage statements shown as your year-end balances?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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not sure as i don't have them to hand at the minute. Not sure i even kept them tbh. Will have a look and see if I can dig one out.0
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Found one out for last year, at feb 2015
Balance £45896.72
Total repayment amount required at feb 2015 £46041.72
That includes admin fee of £145
once again, all calculators online are showing a balance in the region of £35000-£38000 depending on interest rate
thank you0 -
By my calculations, after 10 years the outstanding would be about £38,753.
Was there PPI involved?
A brokers fee capitalised into the balance at inception?0 -
No PPI as far as i'm aware. The arrangement fee was paid at inception (£2095) and is not included in the mortgage (company has confirmed this)
I just can't get my head around it. something seems very awry with this
thanks again0 -
You need to review the annual statements that you were sent.
Is there any form of exit penalty?0 -
trying to dig out my statements now. they said there would be no early redemption fee just an admin fee of £145.
I'm now regretting being very relaxed with my finances previously0 -
i think i might have figured it out. thanks for the help though.0
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Might be helpful for others if you post your conclusions?0
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