Help Wanted - Is my fixed rate mortage being debited correctly?

DarrenMo

Hello,

Please could someone help me answer the following query about my mortgage payments;

I have a 3 year fixed rate mortgage with HSBC. The rate is fixed at 2.59% and I have two months left on the deal.

After looking at my latest statement, I noticed that although the same amount is credited to my mortgage account every month (my standard monthly payment) the amount of interest debited changes each month.

This is sometimes by a couple of pounds and occasionally by £35 plus. This is both in the positive and negative direction. E.g

March Interest Paid = £316
April Interest Paid = £348
May Interest Paid = £336

As I am on a fixed rate deal, I would have expected my interest payments to stay roughly the same each month (maybe slightly reducing each month as the outstanding loan reduces) or have I got the wrong end of the stick?

Is there something obvious that I am missing?

Thanks in advance!

Darren

John_G_Jones

28 days in February,
31 days in March
30 days in April...

Edi81

The day count will be large amounts.

The small amounts reflect that each month you may off more capital and therefore are charged less interest.

They really should teach this stuff in schools! This is the practical side of maths.

kingstreet

John_G_Jones wrote: »

28 days in February,
31 days in March
30 days in April...

Also worth noting, you pay HSBC interest in arrears, so March payment is for February, so it will be smallest and April payment is for March, so that is a 31 day payment, not 30.