Monthly Payment Discrepancy

Kendall80

Looking for advice/info from anyone who may have encountered something similar to below.

I have just started a new mortgage deal with Barclays for £540 a month. However, when I put in the precise details (interest rate and duration) of my mortgage into various online calculators they output a required monthly figure of £400 a month. I intend to pay a flat £600 per month.

This extra required £140 a month results in £15000 of extra interest payment over the term of my mortgage due obviously to smaller overpayment margin.

Looking for advice/info from anyone who may have encountered something similar. Can't get through to them atm - not the easiest to get in touch with.

MattMattMattUK

How much did you borrow, what is the term, what is the fixed interest rate and how long for, what is the follow on rate? 

Kendall80

Hi Matt - thanks for your reply. I'm careful when giving out precise personal financial info over internet forums as i'm sure you'll understand. Just looking for those with similar experience and what reason if any they identified. I have had many mortgage deals in the past and there has been little if any discrepancy between such calcs and the monthly payment. 

la531983

Kendall80 said:

Hi Matt - thanks for your reply. I'm careful when giving out precise personal financial info over internet forums as i'm sure you'll understand. Just looking for those with similar experience and what reason if any they identified. I have had many mortgage deals in the past and there has been little if any discrepancy between such calcs and the monthly payment. 

Nobody can identify you from the information requested.

dunstonh

I'm careful when giving out precise personal financial info over internet forums as i'm sure you'll understand

No-one here will ask for personal information.   Your calculation figures are not personal information

 Just looking for those with similar experience and what reason if any they identified. 

Unless we know the calculation terms, it will be difficult to know where the issue is.   
It could be a figure reversal or calculator using monthly instead of daily.  Or the interest rate not being aligned with the correct method.

If my memory serves me right, the last person I saw ask similar on here was using an online calculator  that was assuming a four weekly mortgage payment rather than monthly and that equated to 13 payments a year vs 12. Hence their difference.

Kendall80

Thanks Dunston - will look into that last point. Although I did try i think 5 different calcs. Am considering just paying off the whole thing and taking the ERC on the chin.

On the personal info point, I also dont have facebook, instagram, twitter etc and use a basic mobile phone. Still powerless to prevent Capita coughing up all my info last year though! A futile battle perhaps.

I don't post much on here anymore (didn't like the format change) but good to see you still knocking about.

englandsrose

Kendall80 said:

Thanks Dunston - will look into that last point. Although I did try i think 5 different calcs. Am considering just paying off the whole thing and taking the ERC on the chin.

On the personal info point, I also dont have facebook, instagram, twitter etc and use a basic mobile phone. Still powerless to prevent Capita coughing up all my info last year though! A futile battle perhaps.

I don't post much on here anymore (didn't like the format change) but good to see you still knocking about.

Rather than giving us small details so we could help you identify the issue you'd rather pay a fee to be done with it? What an odd response. 

Kendall80

englandsrose said:

Rather than giving us small details so we could help you identify the issue you'd rather pay a fee to be done with it? What an odd response. 

What an odd conclusion to draw. Not every situation can be wittled down to a binary choice. 

jrawle

The only answer is that either you or Barclays have done the calculation wrong, and in absence of any further information, I know which my money is on!

Even if Barclays were taking too high a monthly payment, as long as this is being applied to your account, you will not be paying interest on that amount any more. Whether it's taken as an automatic direct debit or as an overpayment you have made manually makes no difference to the amount of interest it will save.

If you do think Barclays have got it wrong, why not contact them? They can then tell you what you are doing wrong, given that you don't wish to provide figures for people to help you here.

Kendall80

jrawle said:

The only answer is that either you or Barclays have done the calculation wrong, and in absence of any further information, I know which my money is on!

Even if Barclays were taking too high a monthly payment, as long as this is being applied to your account, you will not be paying interest on that amount any more. Whether it's taken as an automatic direct debit or as an overpayment you have made manually makes no difference to the amount of interest it will save.

If you do think Barclays have got it wrong, why not contact them? They can then tell you what you are doing wrong, given that you don't wish to provide figures for people to help you here.

Fair points. Thanks. I'm not asking for anyone here to solve my issue - that's obviously best taken up between me and Barclays. I was just looking for information from anyone who has had a similar situation in the past that could highlight something I may be overlooking.

Only variables on the calcs at least are balance remaining, term remaining, length of deal and interest rate (and follow on). So not easy to make a mistake just plugging that info into boxes. However, as you say without further info who is more likely to be in error - sure admittedly it's me 

Kendall80

Just to complete this thread in case others have similar issues in future - I decided to pay off the mortgage.

The payment discrepancy was due to the way they treated overpayment balances. I had 50k left with 20k of overpayments balance. For some reason Barclays calc'd my new deal on the amount without overpayments (ie 70k). This would've resulted in my 50k remaining mortgage costing me a total of 115k to pay off (according to them!). You can ask for them to apply it to your balance and change your monthly payment but by this time i'd already made up my mind. You'd think that should be the default. Anyway - now have to save enough for early retirement!