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

d4rr3n

getmore4less wrote: »

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

Quarterly in arrears, The date of my mortgage agreement letter is Sep 2001 but my first payment of 3564 was made in 2002 so thats what it must mean. Your first payment is due one quarter after start date.

I am going to have to find out what they mean by "base rate" because clearly it is not matching bank of England base rate. I always assumed it did and this is a new discovery to me.


My last mortgage statement says Interest Rate lending @ 2.750%

that's a 0.75 base rate + 2%

BOE is currently 0.5

getmore4less

I have the spreadsheet.

Just need some real numbers from the statements to run the analysis and compare.

You are still guessing what things might mean.

Asking again was this a let property?

getmore4less

Base rate has been 0.75 for quite some time 10months.

d4rr3n

getmore4less wrote: »

Base rate has been 0.75 for quite some time 10months.

The more I look into this the more I am totally confused.

Lets take the initial payments of 3564 which the bank says is a base rate of 4.75 + 2% on a loan of 470k

12 x 20 = 240

470,000 / 240 = 1958.33

1958.33 + 6.75% (4.75 + 2) = 2090.51

[Deleted User]

Capital isn't repaid equally over the term. Most of your early repayments are interest.

You need to calculate the monthly interest on 470k for the first payment.

d4rr3n

It is a Let property but I dont see how that effects anything

getmore4less

d4rr3n wrote: »

It is a Let property but I dont see how that effects anything

You should have the annual details of the interest as that is what you need to claim the tax relief.

If you have been claiming the full payment......

getmore4less

d4rr3n wrote: »

The more I look into this the more I am totally confused.

Lets take the initial payments of 3564 which the bank says is a base rate of 4.75 + 2% on a loan of 470k

12 x 20 = 240

470,000 / 240 = 1958.33

1958.33 + 6.75% (4.75 + 2) = 2090.51

Read up on amortisation

d4rr3n

getmore4less wrote: »

You should have the annual details of the nterest as that is what you need to claim the tax relief.

If you have been claiming the full payment......

The initial amount borrowed
The remaining owed next to every payment
And the lending interest is shown on every statement generated on my mortgage account.

Obviously I dont have all my statements to hand going all the way back to 2002. Most I can go back on-line is to 2012 so I could see how the lending rate compares to BOE back that far. Might be easier just to ask the bank for a history of base rates going back to 2001.

getmore4less

Put up the details for the ones around the time the base rate changed
Aug 16
Nov 17
Aug 18

should not be too hard to work out what was going on if you have month by month data for each payment just do enough months either side of the base rate change to capture the mortgage company rate changes