Fixed Mortgage advice

Nadia1810

Hi there!

After the bank has made some changes to my online banking I can now see the amount of interest added to my mortgage every month.

I have a fixed rate repayment mortgage yet the interest added is going up each month.

I would have thought the interest should be going down as I pay more off my mortgage?

Please can anyone explain?! Thanks!

TrickyDicky101

Whilst your interest rate remains fixed the number of days in the month over which interest is charged varies (think February vs March). This can result in more interest being charged in a subsequent month. However, assuming you are on a standard repayment mortgage and making all repayments on time you would expect over time the interest charged each month to reduce in line with the capital being repaid.

Nadia1810

Thanks for the reply!

I considered this but it doesn't go up and down with each month going 30days, 31days, 30days etc. It is just trending upwards.

: /

kingstreet

No other option but to ring the lender about this.

I suspect you may be on some kind of annual review scheme, but this should not cause interest to be added above the usual amount.