Fully Offset Mortgage - Interest

Thrugelmir

quaium wrote: »

That shouldn't change at all let alone going up every day.

No offset system is capable of comparing a mortgage account to an offset account on a daily basis, and deciding whether interest should be charged. That would take a momumental piece of programming for absolutely no benefit to anyone.

quaium

Just come off the phone to the Barclays Mortgage team and I was right, they didn't have a clue. Apparently there's a glitch, (yes that is what they said) on the system and my real actual mortgage balance is shown on an older system and it just hasn't updated on their systems and my online banking!

Raised a complaint so will see what comes from that. Very frustrating. Thank you all for the advice and comments. Hopefully I get this resolved soon.

getmore4less

Thrugelmir wrote: »

No offset system is capable of comparing a mortgage account to an offset account on a daily basis, and deciding whether interest should be charged. That would take a momumental piece of programming for absolutely no benefit to anyone.

Its not that hard to add up a few accounts and charge on the daily balance

I have 9 offset account including cash ISA that offset.

The monthly statement has daily totals for mortgage account and all the offset accounts combined.

quaium

Further update to this. I had someone from the Barclays complaints team call me and explain everything.


It turns out that it is normal for the interest to be added to the mortgage balance, that's why I was seeing the amount increase by £6 every day. At the end of the calender month, the interest accrued is then deducted based on your offset balance.


On the 1st of July, this did happen and my mortgage balance looked a lot better.


Thanks for the advice everyone.

Thrugelmir

getmore4less wrote: »

Its not that hard to add up a few accounts and charge on the daily balance

One suspects that most lenders don't have just a few accounts to administer. Private banking is an option though.

getmore4less

Thrugelmir wrote: »

One suspects that most lenders don't have just a few accounts to administer. Private banking is an option though.

Barclays used to pool customers accounts to work out the interest rate base on the total.