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    • thakrsun89
    • By thakrsun89 1st Dec 17, 3:41 PM
    • 3Posts
    • 0Thanks
    Mortgage Interest Payment
    • #1
    • 1st Dec 17, 3:41 PM
    Mortgage Interest Payment 1st Dec 17 at 3:41 PM

    I'm on a fixed rate 5yr mortgage at 2.99%. I regularly over-pay my mortgage by whats available at the end of the month. I recently logged into my mortgage account online and saw that our interest rate added to our account varies each month. I assumed that as we are fixed, and I over pay, that this rate applied to what we owe would remain the same or reduce each month (albeit by a small amount). Can anybody explain to me why this amount varies please? For reference, our mortgage is with Lloyds.

    Thank you
Page 1
    • zx81
    • By zx81 1st Dec 17, 3:48 PM
    • 14,401 Posts
    • 15,197 Thanks
    • #2
    • 1st Dec 17, 3:48 PM
    • #2
    • 1st Dec 17, 3:48 PM
    The number of days in the month varies.

    Also, as the capital reduces, unless you asked for payments to stay the same, the payments will reduce.
    • thakrsun89
    • By thakrsun89 1st Dec 17, 4:01 PM
    • 3 Posts
    • 0 Thanks
    • #3
    • 1st Dec 17, 4:01 PM
    • #3
    • 1st Dec 17, 4:01 PM
    Thanks ZX81. I know the accrued interest will differ monthly but it doesn't seem to collaborate when I calculate. Also, some month, my interest applied is over £40 more than the month before, despite the capital have reduced and the days in the month being less. I know this is possibly a query for me to ask my lender, but I wanted to make sure i'm not being silly first.
    • getmore4less
    • By getmore4less 1st Dec 17, 5:01 PM
    • 30,837 Posts
    • 18,445 Thanks
    • #4
    • 1st Dec 17, 5:01 PM
    • #4
    • 1st Dec 17, 5:01 PM
    How much have you borrowed?

    Check the day interest is added if that moves as well then it can vary by more than a days worth of interest.
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