Does this look right to you? (interest charges)

Firsttimebuyer_4

Hi,

Here's a direct copy from the statement on my loan. I think it looks a bit strange. How do they calculate the interest. It goes up and down like a yo-yo and i cant seem to figure out how they've charged it. Surely interest payments should go down...not up?

Even taking the amount of days into consideration i can't seem to figure this one out. I paid more interest for September (paid in october) which has less days than I did for August which has 31 days.

I'm not getting this....

Date Kind of

09/10/2006 Counter Credit £301.36 -£11,502.77
A Bank PLC


05/10/2006 Debit -£74.99 -£11,804.13
INTEREST CHARGED

07/09/2006 Counter Credit £301.36 -£11,729.14
A Bank PLC

05/09/2006 Debit -£73.77 -£12,030.50
INTEREST CHARGED

07/08/2006 Counter Credit £301.36 -£11,956.73
A Bank PLC

07/08/2006 Debit -£85.59 -£12,258.09
INTEREST CHARGED

07/07/2006 Counter Credit £301.36 -£12,172.50
A Bank PLC

05/07/2006 Debit -£73.86 -£12,473.86
INTEREST CHARGED

07/06/2006 Debit -£12,400.00 -£12,400.00
A Bank PLC Initial deposit

CLAPTON

when was the loan taken out

Firsttimebuyer_4

CLAPTON wrote:

when was the loan taken out

7/06/2006 Debit -£12,400.00 -£12,400.00
A Bank PLC Initial deposit

Iwantmorecash

is it linked to to the base rate?

CLAPTON

i think the way they work it out is a follows

rather than take the number of days in the month, they charge interest to the date that the interest is taken

so the first lot of interest is for 28 days
the second for 33 days
the third for 29 days
the forth for 30 days

so it looks about right to me