Is my bank overcharging slightly on every mortgage payment?

warby68

Well you know the reasons why the outcomes might vary and you know that you're with a big lender which is very unlikely to have flawed calculations and for you to be the first to spot it.
£1.50 is meaningless without the other numbers.
Lots of people will have experienced the same but mainly due to lack of understanding rather than error.
If you're so worried about giving numbers I hope that isn't your real name.

getmore4less

^^^^^
Anonymous forum unless you think this is like facebook where they say(but you don't have to) use your real name.

will the real Luke Hayward please stand up.

grumiofoundation

LukeHayward said:

grumiofoundation said:

LukeHayward said:

Deleted_User said:

Did/does your calculator:

• ask for date the monthly payment is due
• differentiate on  method of adding interest
• ask for dates of bank holidays
• does it account for weekends? 

I have seen this 'phenomenon' countless times when i worked in the bank.   Usually it was someone who forgot about a leap year,  or forgot that different parts of their debt was at different rates, or had rounding errors that were then used for different calculations

No

No

No

Not sure

But these things seem minor in the scheme of things. Could they account for a ~£1.50 in HSBC's favour?

Yes they are minor factors. 
But unless your mortgage is very small so is £1.50 per month...
So yes they could (and almost certainly do) account for the difference.

If you want someone to check if HSBC's calculations are correct then you will need to provide the figures.

If you don't feel comfortable providing the figures then obviously no one can check them. 

Many thanks.

I don't believe that £1.50 is small (in the context of *every month* over the life of the mortgage) and can be explained by the factors you mention.

But yes I'm not so much interested in having someone verify the figures - more interested in seeing if others have seen similar issues.

Um OK. Well without knowing your <looks left and right> super secret mortgage figure we can't know if it is small.

For context would be 0.119% of our monthly payment.
We pay ~£16 per day interest so £1.50 is less than 10% of that and would be easy to see that  £1.50 could be explained by direct debit being 1 day out, leap year etc 

If your monthly payment is £6.80 then a more 'serious' difference.

Edit:  I hope with the details I have posted  doesn't mean everyone reading this can find out everything about me. I await to see if anyone steals my identity.

But yes I'm not so much interested in having someone verify the figures - more interested in seeing if others have seen similar issues.

Your prerogative of course, but I don't really see the point in your thread in that case?
You seem to be asking has anyone else been "bugged" thinking their lender is overcharging them but not bothered to actually do the calculations (or get someone else to do it).

LukeHayward

Strange that people seem annoyed I haven't given them all the details of my mortgage so that they can answer a different question to the one i asked.

GeordieGeorge

LukeHayward said:

GeordieGeorge said:

LukeHayward said:

getmore4less said:

LukeHayward said:

I think i've done it ok - HSBC fees were £999 but i entered it to EM Calculator as £1k.  This shoudn't be the diff.

Are you saying that even if i overpay, it's not because the bank has got its interest payments wrong??

provide the information asked for.

Sorry I'm not comfortable sharing all of the precise figures from my mortgage on an open forum. I'm just trying to get a sense for if others have seen this phenomenon too.

Come on. If you’re that paranoid pick a completely random number between 0.1 and 10, multiply every figure by that, and give those.

It’s ridiculous to ask if the figures are wrong then not supply them, how can anyone conceivably help? This is like calling an ambulance then telling them that you’re not comfortable telling them where you are.

I'm not asking if my figures are wrong (I believe they are) - I'm asking if others have experienced the same.

I’m pretty sure that you just don’t understand the calculations, but are too obstinate to accept that.

Why don’t you tell me how much a £100k 25y repayment mortgage should have as the payment in each of the first three months if drawn down on the 5th Jan this year with your payments agreed to go out on the 18th, with the first one in February, at 2% APR, with that APR including the £999 application fee?

GeordieGeorge

LukeHayward said:

Strange that people seem annoyed I haven't given them all the details of my mortgage so that they can answer a different question to the one i asked.

People don’t want to play along with your paranoia and conspiracy theories, they know that it’s not going to be helpful to you.
They know that there’s about one chance in a thousand that you are being overcharged, 999 chances in 1,000 that you are wrong, and are trying to help.
I’ll leave you to it though.

getmore4less

GeordieGeorge said:

LukeHayward said:

GeordieGeorge said:

LukeHayward said:

getmore4less said:

LukeHayward said:

I think i've done it ok - HSBC fees were £999 but i entered it to EM Calculator as £1k.  This shoudn't be the diff.

Are you saying that even if i overpay, it's not because the bank has got its interest payments wrong??

provide the information asked for.

Sorry I'm not comfortable sharing all of the precise figures from my mortgage on an open forum. I'm just trying to get a sense for if others have seen this phenomenon too.

Come on. If you’re that paranoid pick a completely random number between 0.1 and 10, multiply every figure by that, and give those.

It’s ridiculous to ask if the figures are wrong then not supply them, how can anyone conceivably help? This is like calling an ambulance then telling them that you’re not comfortable telling them where you are.

I'm not asking if my figures are wrong (I believe they are) - I'm asking if others have experienced the same.

I’m pretty sure that you just don’t understand the calculations, but are too obstinate to accept that.

Why don’t you tell me how much a £100k 25y repayment mortgage should have as the payment in each of the first three months if drawn down on the 5th Jan this year with your payments agreed to go out on the 18th, with the first one in February, at 2% APR, with that APR including the £999 application fee?

From what I have seen from people that do give the numbers lenders just use standard amortisation to calculate the payment, then adjust as it goes along to iron out the deviations that happen on the real mortgage due to real payment day varuation, starting with the first payment that usually gets a bit of extra interest added.