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Mortgage interest
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meme999
Posts: 4 Newbie
Hi
ive just noticed that although I’m paying off my mortgage and also over paying the monthly interest is staying the same . It a tracker mortgage on interest only the interest is £527 a month and I’m paying £800 plus extra when I can , I have no penalties for overpaying. I can see the balance from 6 months ago on the app and taking the £527 a month out have paid nearly £3500 off the balance but the interest remains £527 a month . Is this right?
ive just noticed that although I’m paying off my mortgage and also over paying the monthly interest is staying the same . It a tracker mortgage on interest only the interest is £527 a month and I’m paying £800 plus extra when I can , I have no penalties for overpaying. I can see the balance from 6 months ago on the app and taking the £527 a month out have paid nearly £3500 off the balance but the interest remains £527 a month . Is this right?
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Doesn't seem like they're taking the extra payments into account. I've heard that some lenders will set the overpayments aside into a related account so they have no impact on interest charged. Perhaps they are gaining interest there instead? I'd be ringing them to confirm what's up.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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I'm sure some mortgages leave the payments the same so that you are paying off the original amount more quickly. If you contact them and tell them you want to reduce the payments to the % of the remaining balance they will adjust for you0
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with nationwide when you make an overpayment it asks you to state if you want to reduce the payment or lower the term (been a few years since I had a mortgage mind you, but it used to be that way)0 -
I’ll ask the Forum Team to move this to the Mortgage board.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1
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I have spoken to them she told me the interest this month is £507 but it’s still shows me £527 and that’s what it adds back onto the account, I’ve asked for a few years statements so I can check what’s happening0
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To clarify . You are seeing both a charge and a payment of £527 on the account. With the account balance not having moved in the past 6 months.0
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Whats the balance of the mortgage?
lbm 11/06/12 dept total 11499.470 -
It’s now £97000 with 7 years left to run0
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The balance is coming down but the interest I’m paying isn’t . I pay the mortgage on the 16th of each month and the interest goes on at the end of the month. The mortgage is interest only but I’m paying extraHoenir said:To clarify . You are seeing both a charge and a payment of £527 on the account. With the account balance not having moved in the past 6 months.0 -
Paper statements might be the only way to reconcile what's going on. Given the customer service agent is also viewing a lower monthly interest charge on the NW system. Which is exactly what you'd expect.
PS. The amount of the monthly direct debit won't be revised until the next interest rate change. This in effect means you are repaying the mortgage quicker at the current time.1
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