Repayments

petetheheat
Forumite Posts: 5
Forumite

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 ?
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 ?
0
Comments
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Daily interest.0
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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 ?0 -
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!1
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We seem to be at their mercy....0
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Straight answers are hard to come by...0
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What's your interest rate?
It'll probably be that it shows you the daily interest accumulating but much easier to illustrate with actuals.0 -
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.MFW 2022 #71 £4400/£44000
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