Spring Finance 2nd Mortgage

woodgie1972

Hello we borrowed 20k 6 years from Spring Finance, we pay back £500 per month and I asked for a redemption figure today. I was told 30k, I explained we have paid around 36k interest why do we owe more than what we borrowed. Please could anyone concur if this sounds correct. We want to sell up next year and be mortgage free and now this may not be possible as 30k would eat into our equity. I was hoping at worst it would be what we borrowed 20k

Thrugelmir

Have you ever received any statements? 
Is the product interest only? 
Could you provide some further details on the loan. 

woodgie1972

Hello it's a capital and interest loan we do receive annual statements. We pay £500 per month, it should be £475 but we got into arrears. I've been paying back £25 per month a total of £1800 and we still owe £280 arrears which means they have been charging interest on the arrears. We want to move next year and become mortgage free, the equity we have in the house should buy us a small place to semi retire. But we borrowed 20k and have paid £500 a month for 7 years and the redemption figure today is 30k I find that hard to except.