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Interest added at beginning of loan?
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WelshLADY01
Posts: 1 Newbie
Hi everyone,
This is my first post, Im really sorry if its in the wrong place !!
Im really hoping for a little advice. We took out a second charge on our property to compelete much needed work four years after we purchased the house
The original loan was done through a mortgage broker and they set it up with first plus which has now moved to Elderbridge. I;ve requested an outstanding balance (loan commenced April 08) for £33000 we have never missed a payment to be told today we still have £26500 remaining. Im devastated we still owe so much after 10 years of payments. They advised me today that all the interest was added at the beginning, no one has ever advised us off this nor have we had a statement in all the years we have been paying (maybe naivety on my behalf) I feel totally flawed by the amount still owing. Is any one in the same position?
Thanks in advance.
This is my first post, Im really sorry if its in the wrong place !!
Im really hoping for a little advice. We took out a second charge on our property to compelete much needed work four years after we purchased the house
The original loan was done through a mortgage broker and they set it up with first plus which has now moved to Elderbridge. I;ve requested an outstanding balance (loan commenced April 08) for £33000 we have never missed a payment to be told today we still have £26500 remaining. Im devastated we still owe so much after 10 years of payments. They advised me today that all the interest was added at the beginning, no one has ever advised us off this nor have we had a statement in all the years we have been paying (maybe naivety on my behalf) I feel totally flawed by the amount still owing. Is any one in the same position?
Thanks in advance.
0
Comments
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How long do you have left on the mortgage?0
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The interest wasn't added at the beginning.
More of your payment goes to interest in the early part of the loan, as capital outstanding is much greater, so the figure may not be as low as you are expecting.
You need to ask for a settlement figure.0 -
What was the original term of the loan?
If you took it over a mortgage-length term, 25 or 30 years you won't pay much off the capital in the early years.
Don't you get an annual statement showing the balance each year?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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