Mortgage Different amounts taken for same interest rate

e125

We had a interest & capital repayment mortagage, which we recently completed.

Looking back at the annual statements we noticed that when the same interest rates were in effect at different times over the years, our montly payments sometimes went up, when compaired to a previous same interest rate, while the capital had decreased.

We have had limited correspondance from the mortagage company, they keep sending statements and not addressing our questions.

My question : is there a simple way of doing calculations myself or are there companies who can help

Thanks

Bob

Thrugelmir

Are you saying that your monthly repayments fluctuated?

Or that the amount of interest charged varied on a monthly basis.

e125

Monthly payments remained same month by month until either interest rate went up or down, payment then followed.
A few years ago there were sometimes 2 or 3 movements in a year, with other years having no movement.

Our question is not really that the payments followed rate increase / decrease, but when we look at say : for example 5% interest rate, we paid an amount based on outstanding mortagage of say
£ 100,000, a few years later with outstanding mortagage of say £80,000 the repayment was higher than when at £ 100,000.

We have asked our mortagage comapny why ( over a 6 month period ) all they do is send copies of statements - which we alraedy have.

BOB

DVardysShadow

When the interest rate changes upwards on a repayment mortgage, the rate at which you repay capital goes down.

So at the end of a period of a higher interest rate, you owe more capital than you would have if the original rate had applied over the period.

If the rate goes back down to the original rate, you owe more than you would have done, so you need to pay more to keep to the original term [or as Einstein would see it, pay the mortgage for longer because time has run more slowly while you were on the higher rate]