SLLM (Single Lady Large Mortgage)

Sistergold

Sistergold said:

Hey ladies
How are you all? I hope you are all doing well with sorting out emergency funds and OPs? 

Mortgage came out yesterday! Balance moved from £472225 to £468848, yeee 🧚🏾‍♀️👯‍♀️🥳!  So now moved from the four seventies to the four sixties! Well have done my little dance and looking forward to four fifties! 

Happy days for sure! 

OP of £115 has hit the account this morning so balance down to £468733 
🎉

Sandyra

Slowly but surely, four fifties will be there in no time x

HelloB

The momentum is gaining pace. Keep it up.

@Sistergold Silly question, how do you track the adjusted interest with your overpayments?  Since you mentioned your mortgage company hasn't got an online login, do you have an Excel tracker? And for the interest which I presume is updated on a daily basis, what formula would one use?  I'm trying to get an Excel on the go, but can't figure out the Excel formula for adhoc payments' impact on the interest adjustments.

frankersBri

@HelloB I have a crude spreadsheet where I try and calculate daily interest. It seems to be a little out versus the what the bank seems to say, but within a couple of quid on the monthly payment day (which is when I think they add the interest).

I have one row per day. I have columns for the date, the day's opening balance, what the daily added interest is (formula = daily opening balance x (annual interest rate / 365), what the daily payment is (be that normal monthly DD or any other OPs), and then what the daily closing balance is (by adding the interest and subtracting the payments to the opening balance for the day). Seems to work quite well, apart from me not yet working out how the bank applies the month's interest..!

Sistergold

@HelloB
I have not gone on to set up a spreadsheet yet, what I did was call the mortgage company to send me a redemption statement which states the daily interest rate. Even then they charge that daily but slap it on monthly. Every payment or anything I do is never quite “real time” anyway it’s always a few days behind. So for instance any OP takes at least 24hrs to reflect when you call automated helpline for balance. I only wanted the daily interest to be able to calculate what to OP as I want to be able to pay at least the total daily interest by the end of the month. 

Sistergold

@frankersBri
Since you are already ahead of us in formulating a good spreadsheet are you able to send an empty working one which we can download and just input figures? Please pretty please! 

HelloB

@frankersBri Thanks for the clear explanation and sharing your workings. One observation is that 2020 is a leap year, so divide by 366 days.  This will increase the difference between your workings and the banks.  One explanation is the bank may not give you the interest adjustment until the next day of payment receipt.  Or another is that my bank started charging me interest a couple of days before completion, as unbeknowst to me my solicitor asked for cleared funds then. However you're very close!  

HelloB

@Sistergold That's so frustrating to have to keep requesting redemption statements.  I've read somewhere else on this MSE site that some people have challenged their banks on interest paid on their mortgages, then won and got money back.  We trust the lenders will calculate the interest properly, but it's worth tracking ourselves if there will be multiple repayments (regular or otherwise).

If there aren't many overpayments in a year or just fixed regular OPs, there is a fantastic free app called Karl's Mortgage Calculator. It's also available on its website.  https://www.drcalculator.com/mortgage/

@frankersBri I was so excited to recreate a daily interest calc that I forgot to congratulate you heartily on your overpayments in May.  Amazing!

Sistergold

@HelloB
I think I have had a long day at work, for some reason found it fiddly to input figures into the link you sent. Will try if latter. 

Thanks for the link
xx

Sistergold

I would not be surprised if banks like mine don’t want online facility so as to manipulate interest charges, as it is it will be difficult to track what is going on and anytime  I pay in they take at least 24hours to apply the payment, this 24 hour delay in decreasing my balance means they charge interest for that day. For me though I just focus on the bigger picture as they are in business and they do have to make their money in any way they can, all in all just getting the mortgage is enough gain as renting will have been a total loss for me at least now I lose interest here and there. The whole process is like Tom and Jerry always chasing each other! 

The banks don’t really expect us to OP. 

XX