mortgage settelment fee
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sitchy
Posts: 1 Newbie
Hi hopefully some one has some better ideas than the rubbish Santander came up with
I rang them twice yesterday with 2 questions firstly how much sooner would 20,000 pay off my mortgage the answer was it would knock 42 months off, fair enought , while I was trying to work that out in comparison to when that would be they gave me a different original end date, I had not realised this ubtil I ended the conversation, next I ranf back and asked how much I would need to pay to settle my mortgage now, I have 6.5 years left now and last mortgage balance on Dec 2017 was roughly 42,800, her reply was it would now be 42,250, i am in shock I thought paying off early it would be a lot less, am I wrong or just thick
thanks in advance
sitchy
I rang them twice yesterday with 2 questions firstly how much sooner would 20,000 pay off my mortgage the answer was it would knock 42 months off, fair enought , while I was trying to work that out in comparison to when that would be they gave me a different original end date, I had not realised this ubtil I ended the conversation, next I ranf back and asked how much I would need to pay to settle my mortgage now, I have 6.5 years left now and last mortgage balance on Dec 2017 was roughly 42,800, her reply was it would now be 42,250, i am in shock I thought paying off early it would be a lot less, am I wrong or just thick
thanks in advance
sitchy
0
Comments
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Are you assuming interest is added to the outstanding loan at the outset and should be discounted due to early repayment, the way a personal loan works?
If you are, that's not the right way to calculate it.
You repay the outstanding capital balance only. That's just what's left of what you borrowed originally, possibly plus any redemption fee and early repayment penalty if subject to one.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 -
It is a lot less as you're saving on all that future interest.0
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