new mfw

chirpchirp

Hi Rosie,

I need to recalculate my maitenence based on the "Retail Price Index". There is no mention of which one. It would be useful to know what they are both called and where to find the information for each one so I can tell ex husband that we are working from which ever one gives me the best deal!

Thanks for letting me know about this, maybe all is not lost yet.

chirpchirp

Rosie, did you mean the consumer price index which the government now uses rather than the Retail Price Index.

chirpchirp

Mortgage payment went through today with an overpayment of £1108.41 (if my calculations are correct!):j. In the next few weeks I will receive my mortgage statement and I'll be able to check for sure how much I have overpaid.

I'm beginning to get concerned about mortgage rate increases, I won't be able to overpay at this rate if they begin to rise. Before I came off my fixed interest rate I was paying £982.08 each month just in interest. Next month, I'm paying, again according to my calculations, £290.22. So, just over £700 a month is due to the mortgage rate cuts!

chirpchirp

Another £750 hit the regular savings account today.

Mortgage statement arrived today. Very confusing as they don't change the amount payable despite each payment. At first it looked like it was out by at least a £130 but I've managed to get to grips with that. Loco's spreadsheet is spot on within a penny most months including June. However, the capital paid off in June when the rate changed from 4.89% to 1.49% is £10 different to what Loco calculates it to be. The bloke on the phone at the building society can't work out why but at least he is prepared to look into it for me. So, my outstanding amount is either £233730 or £233739.74 (building society amount).

setmefree2

chirpchirp wrote: »

Another £750 hit the regular savings account today.

well done :T

chirpchirp

Aaghh I really can't workout why the b.soc. have charged me £9.49 extra in June. I think we agreed on the correct interest but they appear not to have taken £9.49 off the capital! Everything else is correct, some months its a penny more but most of the time it's correct. Has anyone any ideas? Has anyone else had this problem.

The strange thing with my mortgage is because it's interest only they don't recalculate the amount of interest each month with each overpayment. They only calculate it when the interest rates change. The statement tells me very little, just the total of interest charged over the year and the amount paid each month.

chirpchirp

I really hope someone is reading this as I really need some help to understand what is happening regarding the £9.49 which I believe I have been overcharged above.

Apparently, I've been charged this in June when my interest rate changed from 4.89 to 1.49%. It sounds as though on change over day they charge me the difference between the two rates rather than one of the rates which should be 1.49%. I'm arguing that as my rate was due to change on the 1st June then I should have been charged 1.49% for the whole month.

Has anyone else known anything similar to this?

StuartGMC

Can't explain but hope "THEY" can!

chirpchirp

Thanks. Yes I hope they can too. Put it this way, they had better explain it fully so that I understand it or they will find a letter winging it's way to the board closely followed by one to the FSA. It may only be a tenner but times that by all their customers...

chirpchirp

I have the clarification but I'm still not happy.

Interest is normally added as

capital x interest rate divided by 12

However, on months when interest rates change it is calculated as days and not as a fraction of a month. This is done using the following formula:

capital balance x old rate divided by 12 (A)
then an adjustment is made:

capital balance x difference between two rates x 30 divided by 365 (B)

then b is taken from a.

This means I pay approximately £10 more for that month than I would pay by there normal means of calcualting interest.

Does anyone understand this? Is there anyway I can progress this further as I still believe I'm being overcharged by about £10 when they use this different way to calculate interest.