Mortgage Redemption Figure

J

Jimmy85

Registered User
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Hi Everyone

Could anyone inform me on how to calculate a redemption figure for a mortgage.

I can lay out an amortisation schedule in excel which gives me lots of information by month but I would like to be able to get to a specific day for the mortgage balance.

I understand there will be other costs associated with redemption that may vary but if I can get to a daily mortgage balance that would be great. If anyone could share knowledge on redemption costs added to a mortgage balance that would also be great.

Thanks!
J
 
Have you got s bank statement? Is your interest being capitalised monthly or quarterly?
And do you have a variable or fixed rate?
 
Hi Red

(Thanks for all the informative information on the forum!)

The interest is being capitalized Monthly.

I was on a fixed rate but that expired a month ago and I moved to a variable to facilitate my switch which is just completing now.

J
 
It'll be straight forward then. Calculate a daily interest amount - balance after last repayment, times interest rate, over 365
Then that's the amount your redemption increases each day. So after a week it'll be 7 times, etc.

There will be deeds release fee as well, it's around 65 euro, but depends on the bank. It should be in your terms and conditions.

Your solicitor will request a redemption figure from the bank, and it'll be similar to above. It'll give an exact figure as at the date it's issued, and also quote a daily interest amount to be added, along with any extra fees.
It only gets a little complicated if you make a repayment between getting the quote and redemption date.
 
Cheers Red.

I have a redemption figure from the 28/1/2020, I will try replicate it based on the above, The mortgage will be paid off next week so I was trying to figure out the redemption figure on the day it will be paid. Solicitor should have an updated redemption figure soon so once they do I can make my comparisons.

Thanks for your help Red.

J
 
if you pay more than the redemption figure, the balance/surplus will be returned or with your solicitor. You won't be out of pocket, don't worry.
 
RedOnion said:
It'll be straight forward then. Calculate a daily interest amount - balance after last repayment, times interest rate, over 365
Then that's the amount your redemption increases each day. So after a week it'll be 7 times, etc.

Hi Red

Thanks for your help.

Using the daily interest amount I was able to replicate the redemption figure I had from the 28/1/2020.

I then had a mortgage balance after the 24 month period of the fixed rate, I had one payment on the variable rate, using the new daily interest rate from the variable rate of interest I am able to determine the mortgage balance at a point in time.

Thanks Again
J
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