Mortgage Balance gone Up!!

puppychick79

Hi,

Just after a bit advice please, Ive just started with a Halifax mortgage the balance being in my signature and was looking forward to going online to see my balance reduced somewhat as today was my first 'proper' mortgage payment but it seems to have gone up by about £197.61, does anyone know why this should be?? Ive also rounded my payment up so im paying £700 a month. Wasent expecting balance to come down a massive deal but certainly wasent expecting it going up!!!

Thanks

mbeast

Interest is added on a daily basis so the amount outstanding will go up then drop after each payment is made then repeat until paid in full.

HTH

puppychick79

Thanks for that so does this mean that I cant really tell exactly how much im paying off the balance until the next payment is made?

beecher2

In a few days time you should see the amount outstanding go down again. Interest was added monthly on my account even though it is calculated daily and the payment was then subtracted one or two days later.

opinions4u

The online balance calculates the debt at the end of the calendar month and assumes that no further payments will be made.

If your payment has gone out today, it won't show on any Halifax system until tomorrow at the earliest, so at some point not too soon after that a recaluculated month end debt will appear online.

Then you can have a modest smile.