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Original poster

Paying off mortgage advice needed

38 replies

notacooldad · 09/10/2020 17:32

I'm not mortgage Davy so I could do with some opinions and knowledge.
My mortgage company don't charge fro overpayments or early settlements. I have been chipping away at my mortgage for the last couple of years. Officially I have 53 months left.
The other week my balance was £12,801 and the capital balance was £13,387.
I have paid of £2801 and now my balance is £10,000 capital balance is £13387 still 53 months to pay and my monthly payment hasn't changed from.£267.11
I was going to pay another £6000 this weekend but I miss not sure what to do for the best and how much I actually owe!
I have emailed the company bu not had a response.

I'm just looking for an insight here as I know none can offer financial advice as such.

OP posts:

Idontgiveagriffindamn · 09/10/2020 17:37

Without knowing the T&Cs of the company you’re with these are general assumptions:
Your capital balance is could only reviewed once a month but possibly once a year.
Your monthly payment will be unaffected by any over payments you make unless you ask them to review the payment.
If you think you’re getting near paying off your mortgage you can ask for a redemption statement which will give you the settlement figure including any fees. But they may charge for this.

AbbieLexie · 09/10/2020 17:37

Why don't you telephone them?

Original poster

notacooldad · 09/10/2020 17:38

Oops typos! I'm not mortgage savy!
I think what suprised me is that I've paid nearly £3000 and it hasn't made much difference to the figures!

OP posts:

Original poster

notacooldad · 09/10/2020 17:40

Why don't you telephone them?
I'm on holiday and out all day so only time I've had to look at my iPad is when I've got back to the hotel which is after office hours.

OP posts:

Original poster

notacooldad · 09/10/2020 17:43

Your monthly payment will be unaffected by any over payments you make unless you ask them to review the payment
It interesting you say that because my repayment was £570 a month and as I say I was chipping away at it and earlier this year the payment went down to £267 and I only noticed when I was checking my bank statement.

OP posts:

HollowTalk · 09/10/2020 17:45

That's really odd. It should reduce either the term or the monthly payments and the total owing should be accurate. I think you need to call them. Which bank is it?

HollowTalk · 09/10/2020 17:45

Can you see a statement of money paid in? Have you put the right number on the reference when you've made a payment?

Original poster

notacooldad · 09/10/2020 17:50

hollow
The money has gone in as it was £12,8301. This week I paid £500, £281 and £2000.
The outstanding balbce is now at £10k but the capital has only moved by pounds and the monthly repayment and term hasn't been reduced.
I'm sure there is a simple explanation but I don't want to feel Ike I'm going to put another £6k in over the weekend and nothing to change!
It a company called Rooftop. My original mortgage got passed to them and I've had no issues.

OP posts:

HollowTalk · 09/10/2020 18:07

I don't understand the difference between the outstanding balance and the capital. Can anyone else shed a light on this?

Idontgiveagriffindamn · 09/10/2020 18:12

That will have been part of your annual mortgage review it won’t change month on month

AuntieDolly · 09/10/2020 18:21

With Nationwide payments over £500 affect the monthly repayment. The mortgage term doesn’t change, but I can just overpay until it’s gone. When you want to pay it off completely you’ll need to contact them for a completion figure and pay that.

Original poster

notacooldad · 09/10/2020 18:22

don't understand the difference between the outstanding balance and the capital. Can anyone else shed a light on this?
I'm not sure. I think, the balance is how much I owe ( 10k) and capital is how much with the interest if it went to full term. That is a guess though.
I remember having a bank loan years ago and wanted to pay it off early and the bank guy advised that I paid a big chunk off except for say, £50. They would work out the settlement fee based on the £500.
It made sense at the time but I don't know how true it was or if that calculation still applies.

OP posts:

Original poster

notacooldad · 09/10/2020 18:26

So everyone, in my shoes would you pay £6 k this weekend which will ring the outstanding balance to £4K ( and god know how much capital balance) and then £1.5k until it is cleared or just leave it a few moths and pay it off in jdecember or January.
I have to say it's bugging me having this mortgage and I feel so close to the end I want it gone!!

OP posts:

user1486723488 · 09/10/2020 18:29

Only thing I can add is that £267x 53 months is £14+k. I would hold off paying more until their system catches up with your payments.

ifchocolatewerecelery · 09/10/2020 18:32

I think you also need to consider what happens once you're mortgage free. At one point you then had to pay someone to hold the title deeds on your behalf if you had no way to store them. Also fraudsters have been known to target mortgage free properties and successfully remortgage in the owners name leaving them with a pile of debt.

ferneytorro · 09/10/2020 18:38

The title deeds thing is a bit of a red herring. Most deeds are de materialised ie computer records not actual paper. Once you do get to the bottom of this, you can keep track yourself of future payments and what they will do to your balance by downloading an amortisation schedule spreadsheet online, you need to know basic details about your mortgage such as balance interest rate, payment, term remaining but that will help you keep track. When you are making the overpayments, are you telling the mortgage company what you want to do ie reduce the term, reduce the payments and keep the term the same? They aren't mind readers! You may just be putting your account in credit. Ask them for a statement.

Original poster

notacooldad · 09/10/2020 19:04

When you are making the overpayments, are you telling the mortgage company what you want to do ie reduce the term, reduce the payments and keep the term the same? They aren't mind readers! You may just be putting your account in credit. Ask them for a statement
When I was with the previous company I just used to make overpayments and never said anything as I was happy to keep the monthly payment the same and then I would get my annual statement in December and how much I owed would be dropped. So 4 years ago I owed £98,000 and in 2016 I paid £42,000 off. The only thing that happened was they asked for ptoof where the money came fro so I sent them a copy of my savings account which was accepted. The payments stayed the same and the balance reduced to around 50k ( as I had saved some interest) I did similar ( but not as much the following year )and again sent evidence in. It is only this year that a new mortgage provider has took over and like before there is no early redemption or overpayment fee.

All that information you suggested I get, I have already got from my account, that is what has raised these questions. In fact to go a bit further the 2 k I transferred yesterday to round the balance to 10 k is still sitting in pending in my joint account but appears to be already accredit to the mortgage account.

I'll give it a few working days next week and see what happens!

I was just wondering what the best way to go about things and I appreciate your thoughts.

OP posts:

ferneytorro · 09/10/2020 19:42

I’d do two things, get a statement and then track yourself so you just know what’s going on! I work in financial services so I know mistakes are made! You seem fairly clued up, I think you are being harsh on yourself!

OliviaBenson · 09/10/2020 21:55

Don't pay anymore in u too you have spoken to someone about it and you've got a redemption figure.

Waiting for a few days until you can call won't hurt.

OliviaBenson · 09/10/2020 21:55

Until*

Igmum · 10/10/2020 05:22

Yes agree, wait a few days. It's great that you're paying the mortgage off early but some mortgage deals impose a cap on early repayments (I'm on a 2 year deal at the moment and cannot overpay more than 10% a year). Wait until Monday, phone them, have a quick chat and find out from them why there's a difference between these two figures.

ForensicAccountant · 10/10/2020 12:10

So 4 years ago you paid off nearly half your mortgage but the repayments stayed the same. I don’t know why you would keep them the same, perhaps you have already paid off the whole thing!
There is really no way around calling them up and getting the details.

Original poster

notacooldad · 10/10/2020 14:21

So 4 years ago you paid off nearly half your mortgage but the repayments stayed the same. I don’t know why you would keep them the same,
Because the monthly sum was manageable and I was paying lumps off when I had a decent amount of money ' going spare 'some years I have years i have more disposable income than other years.

OP posts:

HollowTalk · 10/10/2020 14:29

@ifchocolatewerecelery

That's just crazy. You can just as easily remortgage if there's a small mortgage rather than no mortgage. Are you seriously suggesting he keeps a mortgage on in case someone defrauds him?

Cocomarine · 10/10/2020 15:34

I’m just confused that this week you paid £500 and £281 and £2000 - instead of £2781

I have this vision of you late night gambling online and paying something off every time you get a win!

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