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Mortgage payment confusion
Comments
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It depends whether its a 30 day month or 31 day as interest is calculated daily.0
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It depends on the length of the month so your smallest interest charge should be February.I'm a qualified accountant but please make sure you get expert advice as any opinion is made in a private capacity.
"A goal without a plan is just a wish" Antoine de Saint-Exupery
Mortgage overpay 2012: £10,815; 2013: £27,562
Mortgage start £264k, now £232k0 -
The capital balance falls slightly each month and the number of days varies, so the interest charged will very, but will be on a long-term downward trend.
When you have a couple of annual mortgage statements, you'll be able to see the trend more clearly.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
The first answer you were given in the thread was very helpful.Hi,
Sorry just to add, so if the interest rate is fixed for two years on the mortgage and the term why does the interest that the lender adds on the remaining capital vary each month? Should that be fixed too?
The interest that the lender adds on the remaining capital is varying each month, goes up one month , then down and then increases again later.
Isn't it meant to go down each month? This is where I am confused.A different number of days in each month.0
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