Help me understand how mortgage interest calculation works

ComputeAngel

Hi guys,

Can anybody please explain to me how the interest is calculated on fixed term repayment mortgage (with Halifax). I thought the interest payment will decrease every month as the loan is now lesser. Below is my transaction history.

e.g. Why is interest amount of 303.73 on 31 Jul 16 is higher than 30 Jun 16 interest of 295.41?

Any help will be highly appreciated...

Thanks



01 Aug 16 Direct Debit 808.92 184,571.81
31 Jul 16 Interest 303.73 185,380.73
05 Jul 16 Bank payment 400.00 185,077.00
01 Jul 16 Direct Debit 808.92 185,477.00
30 Jun 16 Interest 295.41 186,285.92
06 Jun 16 Bank payment 400.00 185,990.51
01 Jun 16 Direct Debit 808.92 186,390.51
31 May 16 Interest 308.49 187,199.43
25 May 16 Bank payment 1,000.00 186,890.94
09 May 16 Bank payment 1,000.00 187,890.94
05 May 16 Bank payment 400.00 188,890.94
03 May 16 Direct Debit 808.92 189,290.94
30 Apr 16 Interest 301.44 190,099.86
05 Apr 16 Bank payment 400.00 189,798.42
01 Apr 16 Direct Debit 808.92 190,198.42
31 Mar 16 Interest 434.96 191,007.34

ACG

Interest is charged daily.

kingstreet

More days in the month.

Some 30, some 31 and then 28/29 for Februarys.

ComputeAngel

Thanks guys Now understand it...