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

getmore4less

d4rr3n wrote: »

The exact wording "Interest: The Bank Base Rate (varying) + 2% per annum charged quarterly in arrears"


Wondering if I can find an on-line calculator to do this, think it would churn out the answer in a few secs

You will not find an online calculator to do that but is is a relatively simple to model in a spreadsheet.

Would need a better definition of "quarterly in arrears"

getmore4less

Post the details from your annual statements.

Was this a let property?

elsien

At the risk of sounding like a broken record, what do your annual statements say.
Have you been checking that they are correct?
That's what you need to be looking at, not guesstimates and gut feelings. Gut feelings tend not to stand up in complaints processes.

Thrugelmir

elsien wrote: »

At the risk of sounding like a broken record, what do your annual statements say.
Have you been checking that they are correct?
That's what you need to be looking at, not guesstimates and gut feelings. Gut feelings tend not to stand up in complaints processes.

With a repayment mortgage little capital is repaid in the early years. Back end of a mortgage is primarily capital. If payments were reduced at some point below the required level. This would have added additional months in terms of fully clearing the debt owed.

busybee100

Hi

I just want to add my experience from around 2009. My mortgage I thought was linked to the bank of England base rate but it turned out to be Barclays base rate. Previously they had run at the same rate but as the BoE rate dropped Barclays decided to keep theirs at a higher rate. Wondering if that is what's happened here.

scottishblondie

“The bank base rate” and the “Bank of England base rate” are not necessarily the same thing. If you are quoting direct from your paperwork then I don’t think your mortgage has been tracking at BOE + 2% but at the bank’s own base rate + 2%. To check if your payments have been correct you’ll need to ask the bank to detail the changes to their base rate over the time you’ve held your mortgage.

Fizzy11

d4rr3n wrote: »

My original mortgage agreement is one and a half A4 pages single sided. It says nothing about minimum base rate.

But this is one of the most important things you’ll ever read & should be read.

getmore4less

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.

Going to need more information to get it more accurate but I can give it a go based on what you have said so far.

Mortgage £470k.
Term 20 years
Start date Feb 02
payment £3,564 per month.
June 08 payment changed to £3359
rate : base+2%

IF I run that against the real base rate change dates using standard monthly amortization calculations

It comes out that the mortgage would have been paid off in Feb this year

But we know this mortgage started at 4.75% +2% and there is this quarterly in arrears whatever that means


The base rate was 4.75% in Sept 01

if we start with that and run with that lag on a base rate change

we get a new paid off date of April this year 2 months later.

if we knew what quarterly in arrears means we could try to model that.

if there is a floor on the base rate say of 2%(4% min rate) that would mean amount owing now would be a round £25k-£30k

which fits with your £27k

You are going to have to dig out more details of the rates being used as small differences can make a big difference to how much is left today.

Your last know rate would be a good start.

d4rr3n

scottishblondie wrote: »

“The bank base rate” and the “Bank of England base rate” are not necessarily the same thing. If you are quoting direct from your paperwork then I don’t think your mortgage has been tracking at BOE + 2% but at the bank’s own base rate + 2%. To check if your payments have been correct you’ll need to ask the bank to detail the changes to their base rate over the time you’ve held your mortgage.

I did think that but others I suggested that to dismissed it saying a bank cant just make-up its own base rate out of thin air. I'm sure there must be some regulations in the UK preventing banks doing that. I always thought base rate meant BOE values.

d4rr3n

Fizzy11 wrote: »

But this is one of the most important things you’ll ever read & should be read.

I did read it, it just didn't say anything about minimum base rate charges as was suggested above.