My Single-interest only-mortgage journey

Monkeychops16

jodles16 wrote: »

Hello just had a nosy of your diary and wanted to wish you the best!

Maths is not my strong point either, is that after your regular interest only payment has gone in? I would imagine that this may have paid more off as the £200 OP will have decreased amount of interest gained? But I'm pants at maths!!

Also, I would love to still fit into old dresses...I keep growing the wrong way!heehee.

Jodles

Ha thanks, I just about fit in the old dress ha. Well i do hope that's the case as the £200 o/p has made a huge difference! SO much so I've cancelled a night out and asked to do overtime tomorrow!

ViolaLass

It's such a shame that the pair of you feel the need to shout out about how 'bad' at maths you feel are. You wouldn't shout about not being able to read, would you?

It's OK to be confused on a point about your mortgages. That doesn't mean you're 'bad' at maths, in the same way that not knowing how to spell or pronounce a word doesn't mean you're 'bad' at English. Perpetuating the stories of being 'good' and 'bad' at maths and being proud of it helps no one.

[teacher rant over]

A_Frayed_Knot

Speaking for myself, and I imagine - the others, not 'bad' at maths, just looking for the formula in how the mortgage companies work out the interest daily. Then is the daily interest added onto total mortgage, then the next daily interest worked out and added? and so on.

Also, not confused at all, we all know we have a mortgage, and we all know interest is added and at what rate you have your mortgage.

Maybe you could enlighten us newbies on our journey to being "mortgage free" as no matter how hard I try, I do not end up with the figure of interest added that the mortgage company come up with.

ViolaLass

A_Frayed_Knot wrote: »

Speaking for myself, and I imagine - the others, not 'bad' at maths, just looking for the formula in how the mortgage companies work out the interest daily. Then is the daily interest added onto total mortgage, then the next daily interest worked out and added? and so on.

Also, not confused at all, we all know we have a mortgage, and we all know interest is added and at what rate you have your mortgage.

Maybe you could enlighten us newbies on our journey to being "mortgage free" as no matter how hard I try, I do not end up with the figure of interest added that the mortgage company come up with.

I'm not saying I know the answer to these questions (I believe my mortgage interest is worked out daily but added monthly but I haven't checked). My point was aimed to the two posters who were saying how bad they are at maths, of which you were not one.

midnight_child

Hey MonkeyChops,


Well done on your progress. These small payments will soon add up and make a big difference.


I should be able to help you with the monthly interest calculation................ You have already done the hard bit as you know your daily interest.


All you need to do is multiply this daily interest figure by the number of days in the month (30 in September), which I get to be £419.31


It might not be accurate to the penny, especially if you make extra payments throughout the month, but will give you a pretty good idea of what you should be getting charged.


MC



My working for the benefit of the lurkers (well it is back to school week):
Mortgage balance £103,062.95
Interest rate 4.95%


103,062.95 x 4.95% = £5101.62 interest paid over the year, which is then divided by the number of days in the year (365) gives daily interest of £13.98


13.98 x 30 = £419.31 interest for September

Monkeychops16

midnight_child wrote: »

Hey MonkeyChops,


Well done on your progress. These small payments will soon add up and make a big difference.


I should be able to help you with the calculation................ You have already done the hard bit as you know your daily interest


All you need to do is multiply this daily interest figure by the number of days in the month (30 in September), which I get to be £419.31


It might not be accurate to the penny, especially if you make extra payments throughout the month, but will give you a pretty good idea of what you should be getting charged.


MC






My working for the benefit of the lurkers (well it is back to school week):
Mortgage balance £103,062.95
Interest rate 4.95%


103,062.95 x 4.95% = £5101.62 interest paid over the year, which is then divided by the number of days in the year (365) gives daily interest of £13.98


13.98 x 30 = £419.31 interest for September

That's brilliant thanks MC-very kind of you :-)

midnight_child

Your most welcome, I am a bit of a geek with this sort of stuff.


My actual interest this month was 4p more than I had expected and I spent quite some time trying to figure out why .

MC

Monkeychops16

Ha I'm glad you got to the bottom of it! Do you know why my new balance is £437.05 less than I thought at all please?!!

midnight_child

Honestly, I haven't a clue.


May only suggestions are:


1) Your monthly interest has not been added to the mortgage yet, maybe delayed due to bank holiday weekend? If so, in a few days the balance will increase to near enough what you imagine it "should" be.
2) Maybe your interest does not fully mirror your repayments and your normal monthly payment actually gives you a very small overpayment (a few pounds), which has mounted up over many months. When did you previously view a statement before you got this one?


I would certainly not be rushing to query it with the bank, just in case.


MC

Monkeychops16

midnight_child wrote: »

Honestly, I haven't a clue.


May only suggestions are:


1) Your monthly interest has not been added to the mortgage yet, maybe delayed due to bank holiday weekend? If so, in a few days the balance will increase to near enough what you imagine it "should" be.
2) Maybe your interest does not fully mirror your repayments and your normal monthly payment actually gives you a very small overpayment (a few pounds), which has mounted up over many months. When did you previously view a statement before you got this one?


I would certainly not be rushing to query it with the bank, just in case.


MC

Morning, the monthly interest has definitely been added-it was put on 31st Aug £433.76 and my normal DD payment of £425.95 on 1st of Sep. Thus online it says my new balance is £103,062.95. It seems the interest is slightly more than my contracted payment, so doubt that's generated an overpayment?
I don't think I've had a paper statement for awhile-it normally gets sent Dec time once a year.

I will keep a close eye on the balance and see what happens. thanks