Monthly interest charge on mortgage

arioooo8

Hi - I wonder if someone can help me understand. I recently took up a mortgage with Halifax and I am on an fixed rate.

I would like to understand how the monthly interest on my mortgage has been calculated. In September, my monthly interest charge for was £1,473.83.

Since then I paid an installment (so the overall loan/debt decreased). I therefore expected a lower interest charge in October. Yet, I was charged £1,521.01 in interest at the end of October - so that does not make sense to me as I expect the charge to decrease every month as the outstanding loan amount decreases.

Am I missing something? Can someone help me understand why the October interest charge could be higher that September?

Southend_2

30 days hath September, April, June and November.....

arioooo8

Southend_2 said:

30 days hath September, April, June and November.....

Ahah thanks! I feel really silly now!! 😂

Brie

Southend_2 said:

30 days hath September, April, June and November.....

Are you sure there isn't something else to factor in to this?  

my rough calculation shows a daily decrease of 6p in interest in Oct compared to Sept.  So less than £2 more being paid on to the principle than the month before.  Doesn't seem like a lot to me.  I know this will accelerate over time but it seems a hugely slow start.

TheSpectator

Brie said:

Southend_2 said:

30 days hath September, April, June and November.....

Are you sure there isn't something else to factor in to this?  

my rough calculation shows a daily decrease of 6p in interest in Oct compared to Sept.  So less than £2 more being paid on to the principle than the month before.  Doesn't seem like a lot to me.  I know this will accelerate over time but it seems a hugely slow start.

How can you calculate anything without knowing the outstanding balance and the interest rate?

D123456789

if the interest is calculated daily

September interest 1473.83 / 30 days = 49.1 per day approx

October (31 days) = 1522 approx