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Nothing has been paid off loan in three years

(11 Posts)
Tingatingatale Fri 18-Nov-16 16:08:43

Me and exh are getting a divorce so we are selling our houses and paying off a loan secured on the house. I have just phoned up to get a redemption figure. The loan figure is £50 less than it started three years ago. We have paid £370 a month for three years.

I am gutted. How is this possible

LowDudgeon Fri 18-Nov-16 16:11:28

Many loans load most of the interest on the early payments, so you pay that off first & only start reducing the balance after that.

sad

pullingmyhairout1 Fri 18-Nov-16 16:11:48

Sounds like the interest was front loaded. That sounds pretty bad. Who is it with? If you don't want to put it on here PM me. I'm a mortgage adviser by trade so might be able to point you in the right direction if anything can be done.

Tingatingatale Fri 18-Nov-16 16:25:18

Thank you I will pm you

Tingatingatale Sat 19-Nov-16 17:32:31

I can't seem to pm on my phone. It is together finance who used to be blemain

Ta1kinpeece Sat 19-Nov-16 17:52:34

If its a repayment mortgage that is entirely possible.
On the spreadsheets thread is a mortgage calculator sheet.
Put the numbers in for your loan (rate, amount, start date) and scroll across to the right to look at the numbers on a repayment loan ...

QueenLaBeefah Sat 19-Nov-16 17:53:39

How long is the term of the loan?

Allalonenow Sat 19-Nov-16 17:56:13

(Just to say the site are having trouble with PMs, but hoping to sort it out on Monday smile )

HerRoyalNotness Sat 19-Nov-16 18:00:48

Yes the interest is front loaded, but surely not to that extent! £50 of capital in 3 years doesn't make sense.

Are there penalties for early repayment which have wiped out the capital payments?
Or has your H taken out more on the loan without your knowledge?
Have you got the statements? Go through them all to see what has gone wrong

pullingmyhairout1 Sat 19-Nov-16 19:27:11

Blemain. Blimey.

I think you should pm me interest rateso, etc.

Is it a fixed rate secured loan for a set time? If so you'll have an Erc if you're still in the fixed rate which might explain it but if you want I can pm you my email when the system is working and you can photo the paperwork to me so I can tell you for sure.

Tingatingatale Sun 20-Nov-16 13:24:52

Thank you for all your replies.

H definitely didn't borrow any extra money and there are no penalties that I know of. The term was 25 years

We were recommended them by a IFA as my credit is bad

I will get on the laptop later and Pm you. All paperwork is in matrimonial home and exh will not let me anywhere near there. I have asked for a redemption figure by post though so hoping it will be on there

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