Mortgage Interest (Fixed Rate) up and down?

Ste_Hyatt

Hi

This is my first post, apologies for being a noob.

Myself and my wife got onto the housing ladder last feb (2013) and have just received our first annual statement from Lloyds.

We are on a fixed rate mortgage not a tracker. My question is....

Why does the interest taken out of the payment each month not drop a little each time?

I thought interest was based on a % of what is owed. Therefor If I pay an amount off each month that % taken out of the payment as interest should drop a little each time.

My % out is up and down? (wanted to add a picture of it but it is asking for URL when it is on my desktop?)

Any help will be much appreciated.

Kind Regards
Ste Hyatt.

Further info it is fixed rate 5.19%

Hurdler

Have you asked them if you are paying off the capital each time? Is the interest calculated daily, monthly or annually?
The best thing to do is call them up and ask them a few questions and be persistent - they like to fob you off so be very sure
Picture - if you go to something like tinypic and upload the image there it will give you a URL.

Ste_Hyatt

Hi Hurdler

Thanks for your response. I will have to ask them for further information. I have now uploaded an image to Tinypic as you recommended.

This site won't allow me to post link as noobie. so as text http : // oi61.tinypic.com/2ut2d6q.jpg

Remove the spaces.

Thanks
Ste

Lois_E

Have a look at which months have more interest. Is it the ones with 31 days? The 30 day months will be a bit less, and Feb is a bonus month when you get a bigger chunk of your payment going towards capital than any other month of the year! Even so, the interest you pay on a 31 day month should be ever so slightly down on the previous 31 day month, and likewise the interest for a 30 day month should be gradually decreasing too.

HTH

PS Some boards can be mean to noobs, but we aren't. We're lovely here - always welcoming and encouraging. :A

Do stick around. :wave: Although if you do, be warned you may get addicted to overpaying. :rotfl:

Edit: OK, I've now viewed your pic of your statement. Yes, your varying amount of interest is down to the number of days interest. The first one is bigger than all the others because it is for more than a whole month - 22 Feb to end of March. The others are just varying according to 31 or 30 days in a month.

Ste_Hyatt

Lois_E

Now I get it

Thank you. In my head I was just saying a month is a month why is it changing. I wasn't doing days lol.

Looking at it (pictured) and the other parts to the statement it is 31 days and 30 days and they do drop ever so slightly if looked at in days.

Thank you very much to you both for your responses.

Ste:D