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bohana34

Good evening people.
I phoned up Barclays the other day to ask for a statement for my loan which was taken out in 2007 ( original amount £25000 ). I have had everything backdated but what interests me is the interest payment. Le me give you an example;


august 2014 interest charged is 162.21
sept 2014 161.90
October 2014 156.38
nov 2014 161.25


Now I'm going to jump forward to;


march 2015 144.47
april 2015 159.52
august 2015 158.13


Why is the interest fluctuating this way? Is it linked to a tracker????


They do not show the interest rate used, only the amount. Is this normal procedure.


Thank you

CLAPTON

bohana34 wrote: »

Good evening people.
I phoned up Barclays the other day to ask for a statement for my loan which was taken out in 2007 ( original amount £25000 ). I have had everything backdated but what interests me is the interest payment. Le me give you an example;


august 2014 interest charged is 162.21
sept 2014 161.90
October 2014 156.38
nov 2014 161.25


Now I'm going to jump forward to;


march 2015 144.47
april 2015 159.52
august 2015 158.13


Why is the interest fluctuating this way? Is it linked to a tracker????


They do not show the interest rate used, only the amount. Is this normal procedure.


Thank you

probably to do with the number of days in their accounting period

so if sept had 31 day and oct 30

and sept was 161.90 so oct might be 161.90 x 30/31 = 156.6

etc
obviously the capital should be deceasing so on average the interest should go down too

Gaz83

Yep, perfectly normal.

To simplify a wee bit, they'll compound daily - some months have 30 days and some have 31 (with February having 28) - in months with 30 days there will be less interest to pay.

bohana34

thank you. That makes sense. The balance is going down slowly, but you have clarified the interest quesry.
Thank you