Ever checked a banks past Interest calcs-over years?

PhilMoney

Hello
I have always had mind to do this, and having recently sold a property and 'redeemed' the mortgage, now I will do it: do a retrospective check on all the interest payments done over time. have they got it right?!!

I have all the past docs and statements. Anyone have any ideas on doing this big job easily and accurately?

thanks

robnye

yes - i did it when i was complaing about misselling of endowment policies.

its long winded,

you will need to get all of the interest changes during the duration of the mortgage.

then enter them along with length of mortgage in months and then a convaluted calulation to work out the interest, something like this

repayment interest payment
(I4*((C5/100)/12)*(1+((C5/100)/12)^A5))/((1+((C5/100)/12))^A5 -1)

I4 = outstanding capital
C5 = interest rate
A5 = number of months left of mortgage

interest only payment
(I4*(C5/100))/12
I4 = portion of capital for interest only
c5 = interest rate

obviously if you wanted to work it out to the day, the n you will need to add in the daily factor

PhilMoney

Thanks Robeye
good to see that you're fantastically fervent!

I shall try and tackle this using your formula. I knew it would be a big one and that one needed all the interest rate changes. If they are wrong (were they in your case?) there must be potential for quite big returns?

I would pay someone to run the checks for me. Possibility for a new tool or service from this website?

This was a woolwich openplan so other factors come in, however, i reckon given a 'known' bank product, the duration /start date and a link to a record of UKs/ bank of england interest changes this could be open to many people.

I dont trust bank computers! (they must use consultants like: Anderson consulting did the IT 'upgrade' for the benfits agency....and that worked well.....)

thanks again

robnye

i didnt do the cals to check what i was due back, more to satisfy an odd curiosity of how the figures where worked out, i still use the spreadsheets and i am able to tell within approx £20-30 my current mortgage balance on £100k +.

it was hard work...... but i's did it.... and felt very pleased with my self, especially as my figs where so close to theirs.......!