Mortgage settlement calculation

Sofee3

I am wondering if there is a way to work out a mortgage settlement figure, can't seem to find any calculators online for this.  Say my mortgage was £114,000 and I was on a standard variable rate (3.59%) with 27 years left and I sold the house, any idea how much this would come down by?  

Unicorn_cottage

Not sure I am following what you are asking?

Sofee3

Sorry, I was thinking that when I sell the house and ask for the settlement figure it will probably be less than £114,000 but I was just wondering if I should expect hundreds or thousands less, if you have any idea?

MovingForwards

https://www.halifax.co.uk/mortgages/mortgage-calculator/overpayment-calculator/

Fill in the details, say how long the original term was, don't worry about putting anything in the overpayment section.

Scroll down and look at the figures in the column. It will give you a rough idea.

D.L

I'Sofee3 said:
I am wondering if there is a way to work out a mortgage settlement figure, can't seem to find any calculators online for this.  Say my mortgage was £114,000 and I was on a standard variable rate (3.59%) with 27 years left and I sold the house, any idea how much this would come down by?  

I'm not 100% sure I understand the question so apologise if I'm wrong... If your mortgage balance is £114,000, paying it off in full will cost you £114,000 + early repayment charges which will likely be £0 given that you are on the standard variable rate.

Sofee3

Ok that's fine I just thought you might save as you would when paying off a loan and getting a settlement figure. Thanks. 

D.L

Sofee3 said:

Ok that's fine I just thought you might save as you would when paying off a loan and getting a settlement figure. Thanks. 

No, you have to pay back the full amount you borrowed... otherwise banks would get back less than they lent out on every mortgage where the borrower sold their property.

On some loans you might get a lower settlement figure but this only happens if you are in financial trouble and the lender thinks they might not get all their money back. Then they might be willing write off the loan for a lump sum payment upfront. Mortgages are asset-backed. If you cannot pay lenders won't accept a settlement. Instead they can repossess and sell your property to get their money back.

Sofee3

Thanks for clarifying 😊

blue_max_3

It will vary depending on when your last payment was and when you redeem. But this won't be a significant figure.

[Deleted User]

Personal loans and finances agreements sometimes dispay a settlement figure with all the interest loaded on for the full term.  If you repay before the end of term then you get a discount as you arent keeping it full term. 

With a mortgage, the interest is only added each month anyway so you only ever end up paying for how long you borrow it for

Technically, a mortgage is the one where you get a discount on the interest 

rjmachin

Was the OP mortgage a 30 year term and the amount borrowed being £114k?
If so, to get the value now (if you do not have online access to your account), as Moving Forwards said, you could use a overpayment calculator.
3 years in to the mortgage, you could expect the mortgage to be at around £107