mortgage statment numbers dont seem to add up

alaf_lidg_77

Hi,

I'm looking at my mortgage statements in an effort to understand exactly what will be left to pay at various points in the future and impacts of overpayments etc.

Last year (07), has an opening balance of £53002.39, and I made 12 payments of £435.78 (5 year fixed 4.49% for 15 year total).

Interest is calculated monthly so I worked it out on the basis of £53002.39 * 0.0449 / 12 as the first months interest, then adding that interest to the capital and subtracting the payement, working out the 2nd month and so on.

Yet I get to the end of the year and "my" closing balance is some 250 quid higher (50340.88 vs 50092.95) although the interest sum I calculate is almost the same (2320.43 vs 2319.92).

I think that there must be a slight error in there somewhere, e.g. opening balance is 1st Jan, payments are on 25th (or 26th/27th, presume on nearest working day), but cant understand why the closing balance is much lower than I calculate.

what am I doing wrong ?, or worst case, what are the A&L doing wrong...

Locoblade

Are you sure they're not calculating interest daily, but adding it monthly?

You could try plugging your figures into my spreadsheet to see if it gives you an indicator where you or they are going wrong. Thats assuming my spreadsheet is correct, but I think it is. Even that only calculates monthly interest though, its not really practical to calculate daily interest whilst taking into consideration the day of the month its paid etc, the spreadsheet would be stupidly large and a lot more complicated.

Gorgeous_George

How much did you borrow initially? I make it £55,143.

GG