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  • FIRST POST
    • d4rr3n
    • By d4rr3n 13th Jun 19, 10:48 PM
    • 33Posts
    • 1Thanks
    d4rr3n
    Gut feeling I paid off my mortgage but I am still paying!
    • #1
    • 13th Jun 19, 10:48 PM
    Gut feeling I paid off my mortgage but I am still paying! 13th Jun 19 at 10:48 PM
    Purchased a house back in the winter of 2001 and been with the same small bank ever since making monthly payments.

    The original mortgage was for a period of 20 years. I obviously have been paying it off at a much more rapid rate since the rates have dropped.

    I have a gut feeling I have paid off my mortgage by a significant amount.

    I know others who are members of this small bank (has perhaps four branches in the UK) and they are not known for being honest!

    I need to get a professional to look into this and do the maths. Any suggestions?

    I searched mortgage investigator but all I could find was fraud on the side of the customer not on the side of the bank.
    Last edited by d4rr3n; 13-06-2019 at 10:54 PM.
Page 4
    • d4rr3n
    • By d4rr3n 16th Jun 19, 4:09 PM
    • 33 Posts
    • 1 Thanks
    d4rr3n
    Never missed a payment that I recall
    Last edited by d4rr3n; 16-06-2019 at 4:18 PM.
    • getmore4less
    • By getmore4less 16th Jun 19, 4:54 PM
    • 37,475 Posts
    • 23,141 Thanks
    getmore4less
    That helps another one from earlier would help more.
    Last edited by getmore4less; 16-06-2019 at 5:00 PM.
    • d4rr3n
    • By d4rr3n 16th Jun 19, 6:45 PM
    • 33 Posts
    • 1 Thanks
    d4rr3n
    That helps another one from earlier would help more.
    Originally posted by getmore4less
    This one is around the period of a change in base rate which should help.

    https://ibb.co/c21fKBB

    Just found a really neat mortgage calculator, should be able to work it out using this.

    https://www.calculator.net/mortgage-calculator-uk.html
    Last edited by d4rr3n; 16-06-2019 at 8:27 PM.
    • getmore4less
    • By getmore4less 16th Jun 19, 8:50 PM
    • 37,475 Posts
    • 23,141 Thanks
    getmore4less
    That calculator won't help it won't do the interest calculation correctly
    It will be tomorrow earliest I can have another look
    • d4rr3n
    • By d4rr3n 16th Jun 19, 9:13 PM
    • 33 Posts
    • 1 Thanks
    d4rr3n
    Just noticed when they made a reduction on monthly payments in June 2008, they extended the term 17yr from that date. 393,125 was owed at that point.

    That would bring the end period 2025, I am obviously going to have this paid of long before so not sure this matters?
    Last edited by d4rr3n; 16-06-2019 at 9:18 PM.
    • getmore4less
    • By getmore4less 17th Jun 19, 5:09 AM
    • 37,475 Posts
    • 23,141 Thanks
    getmore4less
    Looking at those 2 part statements it does look like they were tracking base rate.

    With the rate changing on the same day as base and the balances being shown for payments I suspect they use a daily interest calculation.

    without knowing how they get to the daily rate and what rounding they use(If any) it will be difficult to get exact.

    running those 2 quarters shown I get the interest to within £3 using rate/365.

    Can you clarify when the money was drawn down to pay for the house and when the first payment was?

    Does your documentation say anything about how the interest is calculated(can see it is added quarterly in arrears from the statements).
    • d4rr3n
    • By d4rr3n 17th Jun 19, 12:42 PM
    • 33 Posts
    • 1 Thanks
    d4rr3n
    Looking at those 2 part statements it does look like they were tracking base rate.

    With the rate changing on the same day as base and the balances being shown for payments I suspect they use a daily interest calculation.

    without knowing how they get to the daily rate and what rounding they use(If any) it will be difficult to get exact.

    running those 2 quarters shown I get the interest to within £3 using rate/365.

    Can you clarify when the money was drawn down to pay for the house and when the first payment was?

    Does your documentation say anything about how the interest is calculated(can see it is added quarterly in arrears from the statements).
    Originally posted by getmore4less
    I have emailed them to confirm the date I made my first monthly instalment and am waiting for their reply. That first payment would have became due one quarter after the start date as far as I understand it.

    On my agreement it says it was "sanctioned"Feb 2002. I dont know if that means started, first payment made or proposal generated.

    Other then the statement below it says nothing about interest or how they calculate it:

    "The Bank Base Rate (varying) + 2% per annum charged quarterly in arrears. The current Bank Base Rate is 4.75% per annum."
    • Thrugelmir
    • By Thrugelmir 17th Jun 19, 12:47 PM
    • 65,042 Posts
    • 57,324 Thanks
    Thrugelmir
    Just noticed when they made a reduction on monthly payments in June 2008, they extended the term 17yr from that date. 393,125 was owed at that point.
    Originally posted by d4rr3n
    When you say extended the term. Do you mean that repayments were reset to repay the outstanding balance over the original term of the mortgage. If so, this is a standard procedure.
    “If the financial system has a defect, it is that it reflects and magnifies what we human beings are like. Money amplifies our tendency to overreact, to swing from exuberance when things are going well to deep depression when they go wrong. Booms and busts are products, at root, of our emotional volatility.”
    ― Niall Ferguson
    • d4rr3n
    • By d4rr3n 17th Jun 19, 1:05 PM
    • 33 Posts
    • 1 Thanks
    d4rr3n
    When you say extended the term. Do you mean that repayments were reset to repay the outstanding balance over the original term of the mortgage. If so, this is a standard procedure.
    Originally posted by Thrugelmir
    I mean because they reduced the monthly payments they extended the term by a few years.
    • getmore4less
    • By getmore4less 17th Jun 19, 2:13 PM
    • 37,475 Posts
    • 23,141 Thanks
    getmore4less
    Term becomes irrelevant it just sets a payment.
    The actual payments drive the balance.
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