Fixed rate mortgage but interest different each month?

skintsaver_2

Hi all

I currently have a fixed rate 5year mortgage which has 4 years left on it.

I signed up for online banking with my mortgage company yesterday and have noticed that the amount on interest im charged each month changes with the biggest difference from one month to next being £50, is this normal?

Me and OH cant think why i would change each month if we are on a fixed rate? Our payments stay the same each month but with the interest amount being charges each month some months we pay less off our bill than others

this is how its gone
interest added
282 sept
231 oct
242 nov
241 dec
218 jan
223 feb

Any advice greatfully received

somethingcorporate

Interest is added daily, so if a month has 28 days like Feb you have less interest added than a month with 31 days in, like January.

The rate is fixed but the number of days each month varies. The interest will also change as obviously the capital balance that it is being charged on is changing due to a) repayments you make and b) interest being added on top.

skintsaver_2

thank you very much

amnblog

The 'days in the month' theory does not appear to be working for September and November here.

kingstreet

amnblog wrote: »

The 'days in the month' theory does not appear to be working for September and November here.

Think monthly in arrears.

September payment is August interest etc.

Then it appears there was a recalculatrion done in December which altered the payments from January.

Perhaps the OP can have a look at the mortgage statement and tell us?

amnblog

Whichever way you cut it the November payment seems to have altered a lot from the September one.

mrmajika

Is it not also affected by the date the DD comes out?

That is, if the DD comes out 1st of each month, but the 1st happens to fall on a weekend, then the DD won't be collected until 3rd; therefore incurring a further 2 days of interest.

I'm pretty sure that's the way my ING mortgage works.

somethingcorporate

Indeed, I think it's a mixture of when in the month the DD is taken (and lots of bank hols this time of year), how much has been paid of the balance and the number of days in the month.

Unfortunately it is not that straight-forward but give the mortgage company a call if you want to find out exactly why it is different.