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Amount owed on Mortgage increased overnight?
Gemok
Posts: 11 Forumite
I logged into my banking app today to do my monthly overpayment and the amount I owe has been increased, looks like a backdated increase of over £100 over a year ago. Can bank just add on to what was owed a year ago and not say anything to me about it?
P.s. trying get hold of the bank but the automated systems won't cooperate
P.s. trying get hold of the bank but the automated systems won't cooperate
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Comments
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Monthly interest charge for February 2022.0
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No I'll try and explain with an example (made up figures)
I logged in at the beginning of Feb 2022.
Balance for 01 March 2021 was £100,000
Logged in today 01 March 2022
Balance for 01 March 2021 now says £100,1450 -
Are you on interest only?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Which lender?
what rate?
is the addition amount*rate/12 ?
Mine(Barclays) add the interest overnight end of month.
(daily interest compound monthly)
payment goes out 16th.
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How much is your regular monthly mortgage payment?
What day of the month is this credited to your mortgage account?0 -
I'm on a Repayment mortgageLender- Halifax, Interest is charged monthly at end of month.
Rate - 2% fixed until 2025
Reg payment - £520.30 and I've never missed one or taken a break.
Payment credited - 1st of month (unless weekend or bh)0 -
Then like at the end of every month the interest will be added on. The following day, the 1st in this case, will reflect your regular monthly payment. Tomorrow your balance will have reduced again.
The interest on the mortgage debt is charged in arrears. Calculated on the daily balance owing and charged at the end of every month.0 -
I understand that but how does an interest charge in 2022 affect what's being shown for historical balances in the previous financial year?
It might be a glitch in the App as I've just logged in via their website and it shows the correct figures. I've taken screenshots just in case I need them.0 -
oooo sorry I have just re-read your original post again.
If they have discovered the interest has been calculated incorrectly, yes they can re-adjust the balance. The lender has to make sure you are not in a worse position had the mistake not happened, that is their only requirement.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Was there a charge that should have been applied and now has been?0
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