Gut feeling I paid off my mortgage but I am still paying!

d4rr3n

Purchased a house back in the winter of 2001 and been with the same small bank ever since making monthly payments.

The original mortgage was for a period of 20 years. I obviously have been paying it off at a much more rapid rate since the rates have dropped.

I have a gut feeling I have paid off my mortgage by a significant amount.

I know others who are members of this small bank (has perhaps four branches in the UK) and they are not known for being honest!

I need to get a professional to look into this and do the maths. Any suggestions?

I searched mortgage investigator but all I could find was fraud on the side of the customer not on the side of the bank.

antrobus

d4rr3n wrote: »

Purchased a house back in the winter of 2001 and been with the same small bank ever since making monthly payments.

The original mortgage was for a period of 20 years. I obviously have been paying it off at a much more rapid rate since the rates have dropped..,,,

You have made additional capital repayments?

d4rr3n wrote: »

I have a gut feeling I have paid off my mortgage by a significant amount

I know others who are members of this small bank (has perhaps four branches in the UK) and they are not known for being honest!

I need to get a professional to look into this and do the maths. Any suggestions?

I searched mortgage investigator but all I could find was fraud on the side of the customer not on the side of the bank.

What are the numbers on your latest annual mortgage statement?

warby68

What do your statements say?

getmore4less

Its not that hard to work out with some numbers.

Put up the numbers for the original mortgage and the last statement.

START: Date, Amount, Rate, Term, Payment.
LAST statement : Amount outstanding start and end, total interest, payments, rate.


That will get someone started it might be enough to get close and see if more info is needed for the interim years

That will be all the annual statements.

If that does not tot up close to the right amount then more detail will be required like each change of rate and payment.


it could be something as simple as you are interest only and have not paid any of the mortgage off.

Edi81

In 2013 the OP was with Allied Irish Bank and was querying PPI.

I’d find it hard to believe that you could still be paying a mortgage and it being repaid.

As others have said you should be getting annual statements.

BoGoF

OP - regardless of any BOE base rate drop your 20 year mortgage will still take you 20 years to pay off unless you paid more than your contractual monthly payment.

AnotherJoe

d4rr3n wrote: »

Purchased a house back in the winter of 2001 and been with the same small bank ever since making monthly payments.

The original mortgage was for a period of 20 years. I obviously have been paying it off at a much more rapid rate since the rates have dropped.

Why is that "obvious"? Did your payments drop when rates dropped? Did your rate drop? There was soemone on here a few weeks ago who, through inaction, stayed on SVR for years after the initial fixed rate period stopped.

I have a gut feeling I have paid off my mortgage by a significant amount.

Of course you have, you've only got two years to go (assuming you are on repayment mortgage which i hope otherwise youve got a big shock coming)! Why dont you have actual numbers? I have a gut feeling you have either gone along with lowered monthly payments and so the term has stayed the same or even worse, you've moved onto SVR and the repayments have remained roughly similar since SVRs have fallen since you started, and the term still the same. Someone who relies on "gut feel" to understand their mortgage payments is likely to make one of these two mistakes.

I know others who are members of this small bank (has perhaps four branches in the UK) and they are not known for being honest!

I need to get a professional to look into this and do the maths. Any suggestions?

Why do you need a "professional"? Its simple maths.

I searched mortgage investigator but all I could find was fraud on the side of the customer not on the side of the bank.

What rate are you currently on and what is your monthly repayment?

getmore4less

In a previous thread the OP says,

My property was let so I dont believe I ever required PPI as the rent fully covers mortgage payments

Wonder if it the same one and was interest only?

tacpot12

You will find it difficult to find an expert to review the calculation. Most banks don't even know who their expert is in this field; mainly because the calculations are all done by computer systems developed years ago so the algorithm's designers are no longer around. Testing at the time the system was implemented proved the algorithm was correct. Only data entry errors can cause it to produce the wrong answer.

Ultimately, if you want to challenge this, you will have to find an expert that a court would accept. But in the meantime any IFA or accountant should be able to do the calculation. I would first assemble all the data showing your repayments, capital borrowed and interest rate changes.

d4rr3n

Thanks everyone, I cant put all the details here but the basics should be enough to get an idea if there is an overpayment.

I purchased a house for 470k in winter of 2001, got a 100% mortgage (those were the days) for 470k. First draw down to commence Feb 2002 of 3,564 per month. Term 20 years variable repayment mortgage @ 2% above base rate (which was 4.75% when this mortgage commenced).

Every month I paid 3564 up until June 08 when my monthly payments were reduced to 3359 per month. The interest remained the same 2% above bank base rate (which was 5% in 2008).

Up until now I have been paying 3359 per month. Even though the bank base rate dropped over the years my monthly repayment remained the same.

I currently owe 27k outstanding according to my mortgage account

What I cant understand is since the base rate dropped significantly over the years (yet my repayments remained the same) I have obviously been paying off the mortgage at a much faster rate so you would expect the term of the mortgage to be significantly reduced ?

seashore22

d4rr3n wrote: »

Thanks everyone, I cant put all the details here but the basics should be enough to get an idea if there is an overpayment.

I purchased a house for 470k in winter of 2001, got a 100% mortgage (those were the days) for 470k. First draw down to commence Feb 2002 of 3,564 per month. Term 20 years variable repayment mortgage @ 2% above base rate (which was 4.75% when this mortgage commenced).

Every month I paid 3564 up until June 08 when my monthly payments were reduced to 3359 per month. The interest remained the same 2% above bank base rate (which was 5% in 2008).

Up until now I have been paying 3359 per month. Even though the bank base rate dropped over the years my monthly repayment remained the same.

I currently owe 27k outstanding according to my mortgage account

If you owe £27,000 it's not paid off, is it?

I have to say that relying on gut feeling is an odd approach to finance. Only cold hard facts will do.