Mortgage Capital gone up not reduced after 10 years

N

neddser

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Hi Have a question -

mortgage of 440k ten years ago 5 years fixed interest rate then moved to tracker past 5 years.
arrears approx 70k - current capital balance on mortgage 490k.

Have paid 87 out of 120 payments over the 10 years = 170k (capital plus interest) in last 10 years (if I had included arrears then I would have paid 240k)

How could my capital amount be higher than when I started? Missed interest payments total to 29k (missed capital 41k) so surely that is all that should be added to the capital balance not interest plus missed capital payment?

If I take the missed interest off the paid capital 96k-29k surely that would still be 67k capital reduced off my mortgage not - 52k added to the original capital. Mortgage capital should be approx 380k should it not?

I am getting nowhere with the mortgage company - the response I got was this is worked out on computer so the figures are correct?

5 years fixed was at 6% tracker is at 3.5%

I know there is a lot of detail here but a simple yes or no will suffice in your reply - should my capital be lower than the original capital of 440k?

Thanks
 
The capital, the amount you borrowed, should not have gone up.

Unless they are adding the arrears unpaid interest to the capital?
 
In general there is no separate capital amount and an interest amount, there is one continuous balance that goes up with addition of interest every month and down with the payment of a repayment. So trying to break it down into the two parts would mean going through every month to see the interest content of that payment and the balance would be what the capital would reduce by that month.

Have you looked at annual statements to see the flow of transactions so you can see if or where the balance was increasing?
 
Post up a scan of your last annual mortgage satatement and we will do it for you.
 
What was your monthly repayments on the fixed rate and were you paying the full amount over that term?
 
@Monbretia is correct. The total balance has increased, because unpaid interest is capitalised. Back of an envelop, without knowing exactly when payments were missed, looks correct. 33 months interest is roughly the increase.
Your arrears is included in this balance.
 
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