Overcharged on mortgage for 8 years

getmore4less

getmore4less said:

Why don't people check their payments?

Anyway lets look at some numbers 
if we call that 8years /96 months 
£4500/96 = £46.88pm

They re paid £121 in interest charges 
that does not look right unless you had a very good mortgage rate.

amount	rate	payment	interest
£4,379.00	0.68%	£46.88	£121.43

What was your mortgage rate?
base rate has been low all that time lets say 2% interest

£4,156.00

2.00%

£46.88

£344.80

that monthly amount would have been very useful towards other debt accrued 

what rates were your other debts?
20% would look like

£2,237.00

20.00%

£46.88

£2,261.69

I would ask for a breakdown on how they got 121 in interest.
if you provide more detail information on your mortgage and the dates the rates changed it will be possible to calculate the amounts.

Those calculations are based on paying down a debt which is not really representative of the alternatives.

Once you have the list of actual overpayments  you can calculate the interest saved against the interest you could have saved had those payments been applied to other debts.

if you had debts at higher rates the difference will be significant

eg £11k  paying interest only over 8 years then add a £46.88pm payment.
£11k 2%  £18.33, £65.21 interest saved £375  amount left £6,124
£11k 10% £91.67 £138.55 interest saved £2,452 amount left £4,147
£11k 20%  £183.33 £230.21 interest saved £6,436 amount left £64.

That £46.88pm  would  pay of <£5k of a 2% mortgage but could pay off nearly £11k of 20% debt.