Redemption figure incorrect?

Chalkiesalem

Hope someone can help, I will be ringing my mortgage provider on Monday but I want to make sure I am right before I make a fool of myself.
We currently have a mortgage with NRAM (we were with Northern Rock before it went bump), and they have been sending letters for a good couple of years now advising us to move our mortgage. We finally have enough equity in the house to remorgage else where and this is currently going through the solicitors.
Today I finally got to see the redemption amount that NRAM sent the solicitors and they have it at £65,998 , but on this year's mortgage statement they say that if we had done the redemption on 31st May the cost would of been £66,852 (this does include the discharge of mortgage fee).
How can it only be approx £900 less after 6 months of payments (total of £2,640) ? I know we have paid interest but on that price we have paid more interest than mortgage. Up until 1st October it was 4.78% and then it went to 5.03% but our payments went up with it.
I will be honest I don't understand it all but it just doesn't seem right.

julicorn

The figures seem to add up. On £66k, your monthly interest (based on 5%, sorry I'm just using rounded numbers here) would be £275. You say you've paid £2,640 over 6 months, so around £440 a month.
Out of that £440, £275 would be going towards the interest, leaving only £165 each month being taken off your mortgage balance. £165 x 6 = £990.

Chalkiesalem

Thank you. I have no idea how it works so if it seems right then I am happy to go with that.

julicorn

It seems right to me, but I'm sure there are others here who can check the maths too.

The main problem is that 5% is quite a high interest rate, I'm guessing you'll be paying much less on interest on your new mortgage.