interest only redemption figure £6000 more than borrowed

mumtoeddie

why is my redemption figure more than £6000 more than the figure i borrowed on an interest only mortgage? i have not been told why but got my redemption figure and it is £6000 more than i originally borrowed this seems an awful lot to me and i think it must be incorrect the current mortgage company is Bluestone my mortgage has been sold onto different companies over the years eg Skipton, Scarborough, Basinghall finance and now Bluestone?

amnblog

Has an early redemption penalty been added on the figure provided?

ACG

There are a lot of reasons it could be down to...
If you have renewed the product, did you choose a product with a fee and add the fee to a mortgage? Its not uncommon for products to have a £999 fee, so a few of those over the years could add up?
Have you ever been in arrears or paid late? 
As amn says, there could be an ERC. 

You need to speak to the lender really. 

housebuyer143

If you requested the redemption during the fixed term it will include the ERC.

mumtoeddie

ACG said:

There are a lot of reasons it could be down to...
If you have renewed the product, did you choose a product with a fee and add the fee to a mortgage? Its not uncommon for products to have a £999 fee, so a few of those over the years could add up?
Have you ever been in arrears or paid late? 
As amn says, there could be an ERC. 

You need to speak to the lender really. 

Never renewed the product,  it has been transfered around by the lender several times when the original lender went bust all those years ago, was some arrears / late payments over a short period over 20 years ago but were cleared on arrangement by paying reduced paymnet for a few months then extra payments on top of normal payment to clear the extra that had been left after the reduced period of payments, never been advised of any extra fees that may have been added due to that certainley no fees of around £6000 which seems a lot extra to pay at redemption.

dunstonh

never been advised of any extra fees that may have been added due to that certainley no fees of around £6000 which seems a lot extra to pay at redemption.

One assumes you have been getting statements?  if so, you should be able to see how the balance has drifted over the years.

When you went into arrears and with late payments, you may have brought the payments up to date but did you pay the extra interest that those things created (and the fees created at the time)     If not, then you would have had interest on those.

mumtoeddie

dunstonh said:

never been advised of any extra fees that may have been added due to that certainley no fees of around £6000 which seems a lot extra to pay at redemption.

One assumes you have been getting statements?  if so, you should be able to see how the balance has drifted over the years.

When you went into arrears and with late payments, you may have brought the payments up to date but did you pay the extra interest that those things created (and the fees created at the time)     If not, then you would have had interest on those.

Actually dont seem to have been getting statements only the annual statment but not noticed any large fees even when the payments were late i was told no extra fees were being added as long as they were on time which they were. I will have to ask the lender as you have stated. Thank you everyone for your help and suggestions with this.

ACG

mumtoeddie said:

dunstonh said:

never been advised of any extra fees that may have been added due to that certainley no fees of around £6000 which seems a lot extra to pay at redemption.

One assumes you have been getting statements?  if so, you should be able to see how the balance has drifted over the years.

When you went into arrears and with late payments, you may have brought the payments up to date but did you pay the extra interest that those things created (and the fees created at the time)     If not, then you would have had interest on those.

Actually dont seem to have been getting statements only the annual statment but not noticed any large fees even when the payments were late i was told no extra fees were being added as long as they were on time which they were. I will have to ask the lender as you have stated. Thank you everyone for your help and suggestions with this.

I think you are in for a fun time with this. 
Your current lender is going to say this is what they bought and so might the previous companies. 

Is your mortgage on any of your credit reports? Can you see where the jump may have happened? You can probably get back to 2017 easily enough but beyond that you might need statements or old credit reports if you have any. It might help you to figure it out, but it sounds like it might be from further back than that. 

MWT

mumtoeddie said:

dunstonh said:

never been advised of any extra fees that may have been added due to that certainley no fees of around £6000 which seems a lot extra to pay at redemption.

One assumes you have been getting statements?  if so, you should be able to see how the balance has drifted over the years.

When you went into arrears and with late payments, you may have brought the payments up to date but did you pay the extra interest that those things created (and the fees created at the time)     If not, then you would have had interest on those.

Actually dont seem to have been getting statements only the annual statment but not noticed any large fees even when the payments were late i was told no extra fees were being added as long as they were on time which they were.

So is the extra £6k only showing on your redemption statement, or is it on your last annual statement?