Mortgage Interest Payment

thakrsun89

Hi

I'm on a fixed rate 5yr mortgage at 2.99%. I regularly over-pay my mortgage by whats available at the end of the month. I recently logged into my mortgage account online and saw that our interest rate added to our account varies each month. I assumed that as we are fixed, and I over pay, that this rate applied to what we owe would remain the same or reduce each month (albeit by a small amount). Can anybody explain to me why this amount varies please? For reference, our mortgage is with Lloyds.

Thank you

[Deleted User]

The number of days in the month varies.

Also, as the capital reduces, unless you asked for payments to stay the same, the payments will reduce.

thakrsun89

Thanks ZX81. I know the accrued interest will differ monthly but it doesn't seem to collaborate when I calculate. Also, some month, my interest applied is over £40 more than the month before, despite the capital have reduced and the days in the month being less. I know this is possibly a query for me to ask my lender, but I wanted to make sure i'm not being silly first.

getmore4less

How much have you borrowed?

Check the day interest is added if that moves as well then it can vary by more than a days worth of interest.