Mortgage Rate and Interest Payments

monkeyroon

Hi,

I'm just wondering if someone can help me with my mortgage query? I'm not the best at understanding interest rates etc so I am hoping someone can clear this up for me?

I've had a fixed rate mortgage for the past 5 years at 7.04% and as it is coming to an end in September I have been looking at payments etc.

Over the past 3 months the interest which has went onto this has increase by £122.00 (it may have been going on longer than this but I can only see this timeframe at the minute) . Is this right as I thought that if you have a fixed rate the monthly payments would be the same every month and if anything the interest we are paying should go down not up???

I am totally confused - any help would be appreciated xxx

R_P_W

Interest is calculated daily so some months might be higher than others depending on number of days.

How much is left on the mortgage and what is the value of property? That is a horrible horrible rate!

TrickyDicky101

Are you saying your monthly payment has increased over the last 3 months? That shouldn't happen - the split between capital and interest can and will change, however (for the reason RPW gave, and also because you repay capital so less in the following month on which to charge interest).

Goldiegirl

Although the interest rate is fixed, the monthly payment is not always fixed.

Sometimes events happen that mean they need to recalculate the monthly payment, based on the debt that is outstanding, the term that's left on the mortgage and using the fixed interest rate.

However, they'd write and tell you your new monthly payment.

I'm not sure whether you are saying that you monthly payment has gone up by £122 per month? That sort of change would indicate a major change on your mortgage, like you took out a further advance.

Or perhaps you mean that the interest actually charged has gone up by £122?

I think you'll need to clarify this and provide us with the actual figures involved.