Selling property & paying off GEMoney interestonly mortgage. Extra redemption charges

A

akasha

Guest
I am selling my property and paying off the mortgage with the equity.

I was sent my statement with a redemption figure in November last year. My solicitors contacted them for another redemption figure and sent me a copy and Lo and behold it seemed to jump up over €1,000 .

The mortgage is an interest only and I fully understand that I have to pay a redemption fee but it seems that they slapped the €1,000 onto the original amount borrowed.

Further to that and looking through the statements I received, the original amount borrowed up to now seemed to be upped and upped I thought that interest only was just that and the original amount stayed the same (quote me if I am wrong) and at the end of the term that is what you would pay back.

Am I being a total air head or am I correct that being a lender who deals with bad credit (as I was when taken out) that they are trying to milk as much as they can.
 
Re: Selling property & paying off GEMoney interestonly mortgage. Extra redemption cha

Hi Akasha and welcome to AAM!

Ive broken your post into paragraphs and have expanded your title somewhat to reflect the question.

aj
 
Re: Selling property & paying off GEMoney interestonly mortgage. Extra redemption cha

your latest redemption figure could have been just before your latest payment was due, so the interest for the month just gone is due, hence the extra interest.
and in relation to the extra amount over time, can be related to the fact that repayments would have been worked out over a twelve month period for each year.
as we all know some months have 31 days others 30 and one 28, this will effect the interest charged to the account on each month, more days more interest, less days less interest.
for example the repayment you made for feb should always be more than the interest charged for feb
 
Re: Selling property & paying off GEMoney interestonly mortgage. Extra redemption cha

but shurley that would reflect on the calculations on the interest only not on the original amount borrowed. ie. (mods if this is bad tell me as I m useless at putting things in writing.

annual statement as 14th jan
amount borrowed 94 ,700
payments """"
acct balance 500 on original amount
no arrears
then cost to repay loan at jan rates is what I expected.

this is my queary
all of a sudden my original amount has gone up to almost 97,000

in march surley should have gone down not up in 2 months I have never missed a payment
 
Re: Selling property & paying off GEMoney interestonly mortgage. Extra redemption cha

to answer your original question
your not an air head.
secondly, i think you need to go over your statements for each month and do the interest calculation for yourself, then add up the interest for the whole year.
then add up your repayments and see if they add up for yourself and see if they add up with the statements.

thirdly ask for another redemption statement on the 1st of the month, you can do this, your solicitor does not have to request this for you,

and fourthly stop calling me shurley. ( just a joke from airplane the movie )
 
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