Repayments

petetheheat

Hi ,
I need plain English explaination about my mortgage over payments. I have a fixed rate repayment mortgage with Barclays.
Recently I've decided to start over paying , not on a regular (set amount) , but a £100 here 200 there basis.
My confusion is that the balance does not reduce in relation to the payments.  £93,816  minus 200 over payment should equal 93,616. But 3 days later on checking balance
the total is £93,634...so where did £18 disappear to ?
Can anyone shed any light on why ?

caeler

Daily interest. 

petetheheat

Thanks for reply.
I thought that over payments were interest free? The interest I pay is within my regular mortgage payment and over paying is a sum directly off my balance ?

caeler

I made on overpayment on 1 December along with my regular payment. It went down by that full value and I’ve been gaining a £3.00-£3.01 increase everyday since. Not entirely sure I fully understand myself! 

petetheheat

We seem to be at their mercy....

petetheheat

Straight answers are hard to come by...

jenni_fer

What's your interest rate?
It'll probably be that it shows you the daily interest accumulating but much easier to illustrate with actuals.

Legs21

Do you have any sub accounts on your mortgage? I have one on mine for the fees when I initially took the mortgage out. Any overpayments reduce the mortgage and the sub account on mine.