“
Hi glenner and princesskatrina.
Do you know when your interested is calculated and added to your balance (eg. montly, daily, annually)?
Hopefully this should help me work out why there is the discrepancy.
Dan
Originally posted by MSE Dan
”
Hi MSE Dan
Thanks for your quick response.
I've just spoken to the Woolwich:
Their explanation is that they did not take into account my overpayments when last calculating my monthly repayment amount. This meant they were using a higher total-owed figure than I'd used when using your calculator. (Judging by the response of the person who took my call, this is standard procedure rather than a mistake).
She recalculated, taking into account my overpayments (and thus using the real figure I owe), and came up with a monthly repayment that roughly agreed with the MSE calculator. So, there is no discrepancy after all.
She also assured me that everything I've been overpaying on the monthly repayments is immediately taken off the debt before the interest is calculated.
She offered to adjust my Direct Debit downwards (I declined).
However, I am confused by their explanation, because I based my calculation (using your calculator) on the figures in my mortgage statement, and arrived at a different result to them. They seem to be implying that the figures in the statement are not the figures they used, which is curious. I'm waiting for them to get back to me on this.
And to answer your question, interest is calculated daily and applied monthly.
Thanks
Glenn