Variable interest every month despite fixed interest mortgage

federete

Hello,

We have a fixed rate mortgage with Halifax. I just noticed that every month we get a different interest charged: in and out columns. Sometimes goes up, sometimes down. Is that normal? I'd like to understand this

Many thanks!

Robin9

Different days in the month ?  30/31/28

400ixl

Is it charged daily and therefore the number of days in a month means it varies?

TheMilkmansDad

Also, I assume the interest amount is based on the amount owed so that too would come down (unless its an interest only mortgage?)

K_S

TheMilkmansDad said:

Also, I assume the interest amount is based on the amount owed so that too would come down (unless its an interest only mortgage?)

@TheMilkmansDad It will come down but the change is likely to be very small. For example if your mortgage balance goes down by £500 in a month and you're on a 2% interest rate (so 0.17% monthly interest rate), the interest payment will go down by about 85p or so. All these are approximate numbers of course.

federete

Thanks for all the comments. I have weird ups and downs but considering what you said (days/month) and looking more carefully I think it must be because I made a couple overpayments in between, that must be. Thank you!

Thrugelmir

The day your monthly payment is credited will make a difference too.