Overpaying on Barclays Mortgage can somebody explain because Barclays can't

Weirsmonty

Hi All,

I am hoping somebody can shed some light. We have contacted Barclays and they cannot explain why this is happening or refuse to.
We currently have a Barclays Mortgage fixed rate and are paying £100 per month over the monthly direct debit. But the amount coming off the mortgage on a monthly basis varies??? I would of thought the monthly amount being paid off the mortgage would increase every month .
For example
Outstanding mortgage amount as at April 2018 was £109,800 monthly direct debit payment is £849 plus £100. May 2018 same payments as above. Outstanding mortgage is now £109,067. That is £733 has come off the mortgage. Next month same payments as above £764 has come off the mortgage. All good as as expected but next month same payments only £742 has come off the mortgage and this goes on. If I compare Dec 2018 to Dec 2019.
Dec 2018 same payments and £787 came off the mortgage 
Dec 2019 same payments  only £695 came off the mortgage.
I am missing something obvious? 
Thanks in advance

badmemory

Could it be the day of the month the payments are actually credited to the account?  As some months when paying earlier there has been less interest added already & therefore more balance paid off.

tetrarch

I have a Barclays Offset Mortgage and have seen the same behaviour. At least with the offset account you get all the detailed day-by-day values.

I believe that the problem you are seeing is the delay in calculating the monthly variable portion from a diminishing balance and the fact that it takes a month for the system to recycle and "correct" for the previous overpayment. Having been through their numbers I believe that everything is calculated correctly for the right amount and I was not be losing anything.

You may be able to reduce the noise by moving your overpayment date. Personally, I would look at the downward trajectory on an anualised basis rather than being bothered about the monthly anomalies.

Regards

Tet  

Weirsmonty

Thanks for getting back to me. I did think it might be the day that the overpayment and the mortgage direct debit came out so I combined them both so they now  so tcome aymentsout on the same day but still no difference.

Thrugelmir

Interest charged will vary. Interest will be calculated daily on the balance owing and charged to your mortgage account monthly.