Calculating interest on overdue payments

colsten

8.5% APR seems a bit steep?

dreaming

Lisa1978 wrote: »

Thank you for your PM. Unfortunately it won't let me respond there!
The difference is in number of days in our calculations.

IE on 7th January, £70k paid and I have used 99 days (from 1st October) whereas your days is 14. Can you please explain? I assumed it was from the previous payment before 7th January, ie 19th November but that is more than 14 days. Thanks

You are correct that the number of days is between each payment period. So payment on 19/11/18 reduced balance to 553,500 (hope this is correct but a bit confused by the formatting on this thread). If next payment is received on 01/01/19 then the interest period is 49 (30-19 (days in November) + 31 (days in December) = 7 (days in January).

As I mentioned in my pm. the formatting on my spreadsheet wnet a bit wrong after some adjustments. The days and interest columns have been pushed down 1 row.

Lisa1978

colsten wrote: »

8.5% APR seems a bit steep?

Really? I was advised it should be 8% plus base of England rate.

dreaming

Lisa. The workmen have stopped drilling and hammering now so I think (is there a fingers-crossed emoji?) I have worked out my spreadsheet in a better format. Do you want to pm. me with your home e-mail address so I can send it to you? I don't trust how it will format otherwise. Plus it might be easier to raise any queries directly as the formatting on your thread (for me at least) is very difficult to read. I think it might be due to your first post but not sure.

I have taken the figures from your original post. Although I have shown the payments received they are largely irrelevant (I have just done for comfort). All that is really needed are the payment dates and outstanding balances.

Let me know - I am around all evening.