Leaving my mortgage early

ShaneTKD

Hi,
I have a mortgage which i took out oct 05 with northern rock for £97,000.
It was fixed for 5 years.
I will be wanting to get out of this mortage early and sell my house but i am tied to the mortgage for 5 years.
I have called them today and asked what it will cost me to end this mortgage.
They are sending me out a settlement figure??

So far i am told.
£96,987.19 - Outstanding balance
£250 - Legal costs???
£2430 - 3% penalty for leaving mortgage early
£1000 - they "gave" for helping out with legal stuff when taking the mortgage out, which has to be paid back because i'm leaving before April 09.

Am i right in thinking that the total i will need to sell my house for to break even is £100,0667.19?

Is there anything else i need to be aware of?

Thanks

beecher

How can you only have paid off £12.81 of the mortgage in 16 months? Is that definitely the correct balance?

mountainchrisriver

Don't forget estate agency fees... Solicitors fees involved in the sale of your house...

_Andy_

beecher wrote: »

How can you only have paid off £12.81 of the mortgage in 16 months? Is that definitely the correct balance?

Presumably was an interest only mortgage so no capital has been paid back yet.

ShaneTKD

beecher wrote: »

How can you only have paid off £12.81 of the mortgage in 16 months? Is that definitely the correct balance?

28 months.
That the balance they tell me. I don't understand either. People seem to tell me "you're just paying the interest to start with".
I have taken two payment breaks too:(

I pay £550 a month.

ShaneTKD

_Andy_ wrote: »

Presumably was an interest only mortgage so no capital has been paid back yet.

It isn't an interest only mortgage.

beecher

ShaneTKD wrote: »

28 months.
That the balance they tell me. I don't understand either. People seem to tell me "you're just paying the interest to start with".
I have taken two payment breaks too:(

I pay £550 a month.

Seems weird, especially because I forgot it was 2008

I take it you get annual statements - what does the latest one have as a balance? How long were your payment breaks?

ShaneTKD

beecher wrote: »

Seems weird, especially because I forgot it was 2008

I take it you get annual statements - what does the latest one have as a balance? How long were your payment breaks?

The balance always seems to be around what it is now.

The payment breaks are just a month each time.

So just one each year.

Dick_here

How much is the property worth now, and what did you pay for it ?

ShaneTKD

!!!!!!_here wrote: »

How much is the property worth now, and what did you pay for it ?

I'm not sure whats it worth at the moment, others in the area sell for sround £103k
I paid £90K for the house but borrowed £97k to cover debts i had before.

UK007BullDog

Looks and sounds like 100% plus mortgage on interest only with Northern Rock as the OP states. He thinks it is a repayment but if he is just paying £550 per month then it is an interest only mortgage and the statement amount stays the same.

You might also have an exit fee.

You might just come out of it without any debts as flats took a hammering and still are not selling well.

Find out what you could get for your flat.

Just used the calculator and it is definately an interest only mortgage. Did you take out a loan as well with it?