I had a loan on top of mortgage in 2006 (120% mortgage). It was 18thousand but worked out 27,682pounds with interest. I paid off mortgage a few years ago when I moved to a bigger house and just kept the loan on with the intention of paying the loan off a year down the line.
I contacted NRAM recently about paying off the remainder of the balance and was told that the balance is 21,192 pounds after 12 years. I have been paying 276pounds a month for 12 years and hardly paid anything off. I asked about paying it off early and surely I wouldn't have to pay all of the balance as a lot of that is interest.
I worked out that I am only paying 47pounds off a month and 226pounds is interest.
I just don't understand why the balance is so large. I have another 13 years of paying this and I had just borrowed 18 thousand on top of my mortgage for repairs etc.
Can anyone make any suggestions? When I asked NRAM about paying it early they said I needed to pay 21 thousand back. It just makes no sense to me... I'm really confused.