Nationwide Mortgage Interest charged too low?

jmcdyre

Hi all

For some reason I just looked at my nationwide mortgage account online and I'm a bit confused at the low amount of interest they have charged.

We're on BMR since Feb13 which is currently 2.5% (Base rate + 2%) and the balance at the end of 2013 was £110k. The interest charged to my account in Jan 2014 was £1k. Surely this is wrong? I'd have expected interest of around £2.7k.

Any ideas?

TrickyDicky101

Broadly speaking, I would expect the interest charged in January 2014 (ie for a period of one month) to be around one twelfth of the annual amount of £110k * 2.5% which is approximately £230

jmcdyre

Looking at my previous statements online they appear to charge a full years interest in January for the coming year. Jan 2013 charge was £3k (we moved to BMR in Feb from 5+%), and the year before charge was £6k+ both of which seem correct.

The £1k charged this January is the only interest charge showing on the online statement.

jmcdyre

actually, thinking about it I think that the interest showing is a cumulative amount, so its for the year to date which would make more sense!