Why does our mortgage keep increasing?
Why does our mortgage keep increasing?
Author
Discussion

Pulse

Original Poster:

10,922 posts

248 months

Monday 1st October 2012
quotequote all
I've been checking our mortgage balance online, as we're making a large overpayment today (end of fixed rate). It has been showing the same amount all month, but today is now showing as £400 more. Why would this be?

It did this before, and the only explanation we got from Halifax was that it fluctuates during the month, but didn't give a technical reason.

I'm a bit narked since, as far as I can see, we've just made another £800 payment, yet it's gone up by £400.

Can anyone explain this?

Tumbler

1,432 posts

196 months

Monday 1st October 2012
quotequote all
How and when is the interest calculated and added to the account?

Sarnie

8,373 posts

239 months

Monday 1st October 2012
quotequote all
Interest?


51mes

1,557 posts

230 months

Monday 1st October 2012
quotequote all
The 400 will probably be your months interest.

My old halifax mortgage used to take the money I paid and not credit it into the account to the end of the mortgage year, but each month interest was added to the account...

My current offset mortgage adds the interest to the account the day before I make the monthly payment, so my mortgage balance increases for one day a month, then drops when the payment hits...

Thankfully the trend is still downwards though...

Simes.

Pulse

Original Poster:

10,922 posts

248 months

Monday 1st October 2012
quotequote all
Thanks everyone.

Well, we just paid a large sum (to us) off, so that feels a bit better. Now down to roughly 35% LTV.

limpsfield

6,677 posts

283 months

Monday 1st October 2012
quotequote all
Pulse said:
Thanks everyone.

Well, we just paid a large sum (to us) off, so that feels a bit better. Now down to roughly 35% LTV.
True PH resposne

Pulse

Original Poster:

10,922 posts

248 months

Monday 1st October 2012
quotequote all
limpsfield said:
True PH resposne
hehe I should add it's a 2 bed semi in Swindon! Not quite PH; just sensible (and boring).