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Mortgage redemption statement
charleneann09
Posts: 35 Forumite
Hi I have received a mortgage redemption statement and on it interest has been added. I have to pay an early repayment charge but this is separate. Does anyone know what it's for? If I paid a lump sum off would it reduce it?
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Comments
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What? What the interest is for (from last payment date to assumed redemption date) or the ERC (repaying in full or in part before end of special rate period?)I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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It just says insurance added and then about £800 it's from nationwidekingstreet said:What? What the interest is for (from last payment date to assumed redemption date) or the ERC (repaying in full or in part before end of special rate period?)0 -
Interest is due until the debt is finally repaid. The lender doesn't quote a fixed figure in case redemption doesn't occur on the given date.0
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So I don't have to pay the £800?Thrugelmir said:Interest is due until the debt is finally repaid. The lender doesn't quote a fixed figure in case redemption doesn't occur on the given date.0 -
charleneann09 said:Hi I have received a mortgage redemption statement and on it interest has been added. I have to pay an early repayment charge but this is separate. Does anyone know what it's for? If I paid a lump sum off would it reduce it?
Interest will be added to your outstanding mortgage loan until the date it is repaid.
An early repayment charge is applicable if you are repaying the mortgage before the end of a fixed term and is based on how much is still outstanding on the loan.
You can usually pay a lump sum up to 10% of the outstanding balance, once a year.
However, read the terms and conditions of your mortgage. We can't see them from here.
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Have you ever read the terms of your mortgage?? And all the paperwork/electronic stuff you were sent when you took it out?charleneann09 said:Hi I have received a mortgage redemption statement and on it interest has been added. I have to pay an early repayment charge but this is separate. Does anyone know what it's for? If I paid a lump sum off would it reduce it?
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A ERC (Early Repayment Charge) is a payment that you owe your lender for ending the mortgage earlier than agreed to compensate them for the lack of interest you'll be paying.
This will have been clearly laid out in the terms you agreed to when taking out the mortgage.1 -
I know about the ERC that's listed on there as well as the interestSlithery said:A ERC (Early Repayment Charge) is a payment that you owe your lender for ending the mortgage earlier than agreed to compensate them for the lack of interest you'll be paying.
This will have been clearly laid out in the terms you agreed to when taking out the mortgage.0 -
charleneann09 said:Hi I have received a mortgage redemption statement and on it interest has been added. I have to pay an early repayment charge but this is separate. Does anyone know what it's for? If I paid a lump sum off would it reduce it?charleneann09 said:
I know about the ERC that's listed on there as well as the interestSlithery said:A ERC (Early Repayment Charge) is a payment that you owe your lender for ending the mortgage earlier than agreed to compensate them for the lack of interest you'll be paying.
This will have been clearly laid out in the terms you agreed to when taking out the mortgage.
What exactly is your question?3 -
What does interest added mean on my mortgage redemption statement. It just says interest added £856Tiglet2 said:charleneann09 said:Hi I have received a mortgage redemption statement and on it interest has been added. I have to pay an early repayment charge but this is separate. Does anyone know what it's for? If I paid a lump sum off would it reduce it?charleneann09 said:
I know about the ERC that's listed on there as well as the interestSlithery said:A ERC (Early Repayment Charge) is a payment that you owe your lender for ending the mortgage earlier than agreed to compensate them for the lack of interest you'll be paying.
This will have been clearly laid out in the terms you agreed to when taking out the mortgage.
What exactly is your question?0
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