Woolwich/Barclays - Mortgage balance increased online, anyone seen this?

Bossypants

I have to admit I am stumped and would appreciate any insights. Story as follows:

I recently took out a mortgage with Woolwich (beginning of May was the first payment). Yesterday I transferred £1 from my current account at HSBC to the mortgage account so as to save the account number with HSBC for future overpayments. Yesterday I took note of the balance, which ended on £710.01, so that I would know whether my transfer had been taken into account or not. Imagine my surprise on logging in today and finding that, while the £1 transfer had been registered in the 'transactions' section, the balance of the mortgage now ends on £717.42. Annoyingly the balance after each transaction is not shown, only a list of transactions and the current balance, so I can't track back very effectively, but in any case the only transaction listed since 15 May is my £1 transfer.

The only thing I can think is that they are adding the interest on a daily basis? Anyone seen this before? Will make overpayments less satisfying if that's the case, although of course it doesn't really matter in the end.

minimike2

It is as you suspect - Daily interest. It will show in real time.

dimbo61

Yes I also have a Barclays offset mortgage and can check my balance daily.
I can also check my offset savings accounts daily.
I try and overpay to set little targets every few months.

getmore4less

To be even more confusing they may add the interest daily to the balance but the compounding will be monthly so the following days interest will be based on the previous date the compounding reset.

For us that is the 1st of the month.(the daily interest for the month is based on the balance on the first.