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Can anyone help

Desperadoo
Desperadoo Posts: 99 Forumite
Eighth Anniversary 10 Posts Name Dropper Combo Breaker
edited 17 June 2022 at 7:10AM in Mortgages & endowments
Like so many rate rises are worrying.

I am on a subprime mortgage and rate is 3.29% above BOE rate 

When rates started to change  payments went like this 


£565.....before any rises
£582
£584
£587


Now £2 or £3 a month not to bad.  Owe  £19k now.  I was shocked when first rise was £17 a month but never queried why it was so much and now sure if I should ask now  as worried maybe the smaller rises are wrong and I should be paying more 

Can anyone help why first rise from 3.39% to 3.54% would have been such a difference yet each other rise is so small 

Yesterday's rise will put me to 4.64% 

Thanks 
June grocery challenge £164 /£460...
week 1  £87/£115 
Week 2 £77/£115



My Debt Free Diary >>>>>https://forums.moneysavingexpert.com/discussion/6360269/desperate-to-sort-my-life-for-last-time

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Your mortgage is very small, so obviously each payment reduces it significantly. As interest is calculated on your balance, the impact of each rise in pounds is reduced.
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