Term Question

moncs

Morning everyone,

I took out a 25yr mortgage 10 years ago and its just came to the end of its 10yr fixed rate and now I have dropped form 4.9% down to 1.2%. Happy Days!!!


However I noticed that on the mortgage statement it says the initial term was in fact 27yrs and not 25. I have the original documentation saying that it was 25 years and have now raised a case with Barclays who are looking into this.

If proved correct and indeed it was 25 years, am I correct in saying that the outstanding balance would be adjusted and reduced as they have done the initial repayment calculations on a longer term?

I done some calculations myself and if I took out a 27yr term I would currently have £61k left which is correct accosting to the last mortgage statement, however if I took out a 25yr term I would only have £57k left

ACG

No, theyre not just going to reduce your balance down to what it would be had the mortgage been 2 years shorter.

What they may do is to amend the term and in turn up your payments and refund any additional interest youhave incurred because the mortgage has been done over a longer period. Alternatively as that is probably a lot of work they would just offer you some compensation, chances are based on a £60k mortgage it would be maybe £200?...as a bit of a ball park guess.

Best bet is to wait and see what they come back with and then go from there.