Mortgage not decreasing much? why?

gasman786

There was no fee added. The exact rate was 5.24% for 3 years.

There was a PPI on this which I cancelled after 3 months as i hadnt realised they had added this.

Its a repayment mortgage over 30 years.

bhjm

your total mortgage value was around 125.00£ - 67000£ already leaves you with almost the same amount left to pay.

yes - from 85.000 to 125.000 is the interest you paid.

Thrugelmir

gasman786 wrote: »

Just going through paperwork i was on a 3 year fixed at the start and the rate was 5.5%.

After the three years I was moved onto the variable rate of 4.5%

Quick look at the figures suggests that something is missing. Did you drop to 4.5% immediately. As the balance does look on the high side otherwise.

gasman786

Yes the rate dropped from what i remember as soon as the fix rate finished, it was around the time of the crash when the BoE slashed interest rates to 0.5%.

One thing to add though, ive taken about 8 payment holidays over the 12 years, which looking back probably wasnt the best move.

Thrugelmir

gasman786 wrote: »

Y
One thing to add though, ive taken about 8 payment holidays over the 12 years, which looking back probably wasnt the best move.

That's your answer then as to why the balance remains high. In the months you paid nothing. Your debt was increasing upwards by £300 or so every single month. Plus any administrative charges levied. On the increased balance you would pay yet more interest.

Can you scrape any money together to overpay your mortgage. However small it maybe. This would save you a lot of money in the remaining 18 years of the mortgage. Would also result in the mortgage being repaid earlier. Also provide some protection against interest rate rises in the future.

dunstonh

One thing to add though, ive taken about 8 payment holidays over the 12 years, which looking back probably wasnt the best move.

Authorised arrears are still arrears. Just without the markers. In effect, you have almost gone a year without repaying. That is major information when people are looking at what you are paying.

Your debt increased each of those months and interest is charged compound.

getmore4less

Stop drip feeding I refer you back to post 7.

All the info from the start.

Post never missed a payment
Post 15. 8 payment holidays(how long was each)
Include those in the list of statement information.

Tom99

I doubt interest has been fixed at 4.5% for the past 9 yrs

Thrugelmir

Tom99 wrote: »

I doubt interest has been fixed at 4.5% for the past 9 yrs

SVR has changed little.

Thrugelmir

getmore4less wrote: »

OP does not say that.

Agreed. At the time of writing was obviously something missing. This seemed a plausible explanation. Little did I know.