Project Mortgage Neutral Begins

ajmoney · 28 October 2019 at 8:24AM

Ok, so I can be a little OCD with the mortgages and check the balances every day making a note of them so I have noticed something very peculiar today. The interest on my smallest mortgage is currently (normally) 48/49p a day but in the last 24 hours has doubled to 97p, anyone any idea why this might be. My mortgages are normally really stable with interest and it is a little weird, especially as I am putting all my focus into this mortgage to pay it off very quickly.

Suffolk_lass · 28 October 2019 at 9:01AM

Me too! My interest in my online BS account is rarely right - it is updated manually by the staff as far as I can tell. Over the last few years I have been regularly paying a set amount each month that includes a regular overpayment (the mortgage is IO) and they never adjust the interest to reflect this (despite it being several hundred pounds per month). I also make regular lump sum overpayments and in response I get a letter with a completely different interest amount (accurate though) - it then gets updated in the online account to that amount at some point in the future. Pretty random though, so I take the amount in the letter and use that because I know they have taken the total capital outstanding and multiplied it be the interest rate - because that calculation matches mine. None of the others ever do.

I have also had a very weird conversation with them about what compound interest is and how they calculate it. Despite the person I was communicating with insisting that they calculate it daily, they don't. What they actually do is calculate it annually and then divide that total by 365 (or 12) to determine a mean average over the year. This related to an interest bearing account, not the mortgage but if that is the algorithm you can see why it is inconsistent.

I cannot imagine how your interest could have doubled though. Has the capital balance changed too? the only thing I can think is that repayments below a certain amount could be taken to be advanced payments of interest rather than capital repayments, unless you have expressly requested that it is taken off the capital and someone might have applied this retrospectively. Purely speculative though. I use the secure message facility to query things so I have a record of the questions I ask and their answers.

A_Frayed_Knot · 28 October 2019 at 2:53PM

ajmoney wrote: »

Ok, so I can be a little OCD with the mortgages and check the balances every day making a note of them so I have noticed something very peculiar today. The interest on my smallest mortgage is currently (normally) 48/49p a day but in the last 24 hours has doubled to 97p, anyone any idea why this might be. My mortgages are normally really stable with interest and it is a little weird, especially as I am putting all my focus into this mortgage to pay it off very quickly.

Are you out of your fixed deal ? only thing I can think off which may double your interest.
Does it show your interest added daily or is it because it is a long month (well for payday anyway).

ajmoney · 28 October 2019 at 11:07PM

A_Frayed_Knot wrote: »

Are you out of your fixed deal ? only thing I can think off which may double your interest.
Does it show your interest added daily or is it because it is a long month (well for payday anyway).

No still in my deal. It just adds to the nterest daily, I make a note of the totals and calculate it daily myself. The other two mortgages are normal amounts. Just in so going to check again and will get in touch with the bank if they are still different.

ajmoney · 31 October 2019 at 7:20AM

It has been a strange couple of days. On Tuesday morning a little at my wits end about something medical I went into the doctors which has resulted in me being sent for a few tests, just waiting for the referral. I went round to Mr AJM's to chat to him and get it all off my chest, which certainly helped.
I decided to take yesterday off swimming as I hadn't had a day off for a while and went to do my physio at the gym instead. On the way there I very nearly crashed my car. I still have no idea what happened, I drove that way again in the afternoon and still can't figure it out. It is only because I have a modern car that bleeped to tell me to brake that I did, I think at the end it must have intervened and stopped me as I had resigned myself to hitting the car in front. After I was trying to rack my brains to work out what I was thinking that distracted me so much but I didn't succeed. I am a little concerned about this but I know I had a lot on my mind yesterday so I am just being very careful now.
Just this morning to get through at work and then we are off until Tuesday and I think it has come at the perfect time. We have a leaving do this afternoon and evening, I have a sax group first and then heading into town. I feel a little guilty that I won't be out long but as I am driving it is not much fun watching everyone else drinking. I have booked in for swim training at 8 to help clear my head, I owe it to myself to stay focused.

ajmoney · 14 November 2019 at 12:52PM

Ooops, it has been a little while since I last posted. It has been a busy few weeks at work and with my hobbies but at the same time I don't seem to have got much done. I have spent a lot of time swimming and am nearing the end of a charity challenge, the first part will be completed on Sunday no matter what and the second part on the 25th. I haven't done any of those house jobs but have today off work so other than a swim later I am spending the time doing these things. Hopefully Mr AJM can come round in a couple of days to help me with one of the things I can't do by myself.

ajmoney · 17 November 2019 at 3:07PM

Final open water swim day is here and it is a strange feeling. I will continue to swim outside but my work schedule will mean it is not possible for the next comple of weeks or certainly not as frequently and I am going to miss it. Both the social aspect and the serene calm it gives me. I have been blown away by the donations that have been coming in over the last couple of days from my swimming community with other people pushing my fundraising page and am starting to wonder how far I get when I finish the overall swimming challenge in 8 days time.

Trying to come up with Christmas present ideas for my family so I can buy everything early and not have to bother in the busy run up to Christmas but it is not easy. My mum and dad don't really have any hobbies and I am loathed to buy things that just clog up the house. They have given me a couple of ideas so hopefully they will help.

Suffolk_lass · 18 November 2019 at 10:06AM

ajmoney wrote: »

Trying to come up with Christmas present ideas for my family so I can buy everything early and not have to bother in the busy run up to Christmas but it is not easy. My mum and dad don't really have any hobbies and I am loathed to buy things that just clog up the house. They have given me a couple of ideas so hopefully they will help.

I have just bought a delivered flower subscription to send fresh flowers to my Mum in January, Feb and March as we are in the same position regarding "stuff". I thought it might lift her spirits in the miserable months of winter when she can't get out as much to see her pals

A_Frayed_Knot · 18 November 2019 at 10:27AM

Lovely idea SL,

I was thinking of a show they might want to see with maybe a nice meal thrown in, or a weekend away.

ajmoney · 21 November 2019 at 6:54PM

I had a telephone chat with my career manager today to find out what their plan is for me over the next couple of years. While they can never be certain about anything, I am expecting to stay in my current job for another year and then I may get a move back down south for a couple of years. While my circumstances now mean this is even harder than when Mr AJM were together at least I will have time to get my head around the idea. The bonus is that if this move happens it will mean I have an extra 5 years in my job which gives more of an opportunity for promotion and a better pension pot at the end.

New sofa is being delivered on Tuesday, they only had 2 possible delivery dates which don't really work for anyone who works but luckily my mum is going to stay for a couple of days so she can sit in and wait for the delivery. She feels the cold quite a lot so I need to make sure the house is warm for when she is here.

Project Mortgage Neutral Begins

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