Selling Home Settlement Figure same as balance

mistertml

I am selling my home and have a buyer. I enquired about my mortgage settlement figure and was told £54,634. There is still 17 years and 3 months left on the mortgage.

I would've thought I would save 1000's but is this not the case?

My present balance is £55,015.

This is a repayment mortgage.

Thanks in advance

kingstreet

Why do you think interest-only would make a difference?

You owe what you owe and if you've paid nothing off, it's what you started out owing, give or take the interest until the end of the month of redemption.

mistertml

kingstreet wrote: »

Why do you think interest-only would make a difference?

You owe what you owe and if you've paid nothing off, it's what you started out owing, give or take the interest until the end of the month of redemption.

I was going off what it shows when you check an overpayment calculator and thought the same rules would apply?

I guess this is not the case.

Thanks

kingstreet

Overpayments? They only apply to capital & interest repayment mortgages where you are actually repaying capital.

On interest-only, the only way you will see the amount you owe fall is by making a capital repayment of some kind which would always be voluntary.

mistertml

kingstreet wrote: »

Overpayments? They only apply to capital & interest repayment mortgages where you are actually repaying capital.

On interest-only, the only way you will see the amount you owe fall is by making a capital repayment of some kind which would always be voluntary.

Hi Sorry, my mortgage is a repayment mortgage not a interest only mortgage.

Thanks

TrickyDicky101

The outstanding balance you see as "present balance" does not include any future interest - it is the amount you owe 'today'. Hence why it is (or should be) remarkably similar to your redemption amount.

mistertml

TrickyDicky101 wrote: »

The outstanding balance you see as "present balance" does not include any future interest - it is the amount you owe 'today'. Hence why it is (or should be) remarkably similar to your redemption amount.

Thanks for clarifying this, it makes more sense now.