Interest payments not decreasing

col_b96

Hello. We had a mortgage of 154k . Mortgage is calculated with daily interest. Paying about 175 to 180 a month with a rate of 1.4 I believe . We're almost a year in and with regular payments plus some overpayment we've cleared about 11k however I am seeing no reduction in the amount being added as an interest charge every month. Whilst I know it's only a small dent I'd have expected to see a minor difference. Can anyone clear things up?

Caz3121

this is quite handy for seeing the impact month on month
https://www.theguardian.com/money/loan-repayment-calculator-interest-rates but won't account for overpayments

getmore4less

what are the numbers/dates for the first 3 and last 3 months of the year so far

What are you expecting the numbers to be?
eg approx will be
£154k @ 1.4% ~£180pm interest
£143k @ 1.4% ~£167pm interest

These numbers will vary each month depending on No. of days in the month, when the payment is made and when the interest gets accrued.

col_b96

Halifax says over payments not reflected in term reduction online .

Sep balance 147171 interest 175.88
Aug 149843 /183.74
July 150808 / 184.24
June 151197 / 178.74

Rate 1.44

getmore4less

Those look about right for the ballance

You need to find out why your overpayments are not being applied to the ballance.

ViolaLass

Look at it another way, the daily interest on £11k at 1.4% is 42p. Very easy for it to look like nothing has changed.

somethingcorporate

ViolaLass wrote: »

Look at it another way, the daily interest on £11k at 1.4% is 42p. Very easy for it to look like nothing has changed.

+1.


Also as the number of days in the month changes it makes it harder to compare.