pammyj74's MFW diary (or possible wishful thinking!!)

pammyj74

sorry another question then, the interest is daily but is that only added on once a month?

determined1_2

Yup, it is calculated daily, but only ever accrues not added. Otherwise you would pay interest on your interest in a never ending crazy spiral.

The daily interest is calculated as follows:

Capital balance outstanding x ROI / 365 (366 if leap year)

It will then be this amount for EACH DAY until you make your next payment. If you make a payment half way through the month, the accruing interest per day is then recalculated.

HTH

pammyj74

Feel better now My balance this morning shows £86,049.98

StuartGMC

Pammy
Glad to see the "mystery" has been resolved. Onwards and upwards girl from no on!

pammyj74

Thanks Stuart
Would like to say a BIG thank you to determined1's hard work in setting up my spreadheet which will be my big motivation to keep the o/ps up. think the halifax think I'm mad with all my questions lately!!!

Catanddogs

:T Keep it up.

pammyj74

I'll try

so my info from Halifax today is that my daily accrued interest at the moment is £13.88!
I am able to pay a further £7689 o/p up until jan 16th and then he says i can then pay a further £800.
how is that worked out? Is it not then you get another year of 10%?

determined1_2

pammyj74 wrote: »

I am able to pay a further £7689 o/p up until jan 16th and then he says i can then pay a further £800.
how is that worked out? Is it not then you get another year of 10%?

This doesn't sound correct

The rule is quite complicated but basically from my understanding:

From the day you start overpaying (I'm guessing this was in Jan), you can overpay by 10% of the capital balance o/s before the OPment within the next twelve months. When the new twelve months begins, a new 10% is calculated. I therefore have no idea of how the £800 was calculated. I can't see how they would even know as they're not going to know what your balance will be in Jan as they do not know how many OPs will be made.

Maybe he made a guess at £800 per month.
But 12 x £800 = £9,600 which is more than 10% of your current balance

I really have no idea. Prob best to ring them again and get another opinion. You should be told they don't know about next years as they can only tell you this for definate the month before

pammyj74

I did think the 10% would start again.
Also if the o/p limit is reached and as you say lessen the term would I get charged paying extra that way instead?

determined1_2

No, it's simply a good loophole for getting round it. There is no fee for reducing the term either.

I've just taken 15 years off my term and it only increased my normal payment by ~£160. Had to be done or I will get close to the limit next year and I certainly don't want to be paying any charges.

Only disadvantage is you are then committed to the higher amount each month. You can put the term back up so I have been told (by Halifax)