Weird Mortgage Balance issue

[jayymannon]

Anyone able to tell me what's going on?

For example (not actual figures):

My mortgage balance was £60,786 last week
Interest of £354 has been applied on 31.5.24
New mortgage balance is now £61,455
My man maths tells me something is off and there is over a £300 difference

No other transactions are showing on the account, however, the interest rate did change today (1.6.24). Despite this rate chage, the new product had no fees to be paid and the rate changed the day after the old rate ended so there should be no fees. Also no early repayment fees etc.

So what's going on?

Thanks

Note: Phone lines not open on weekend so i'll be ringing Monday if I can't figure it out

[Cats_pyjamas]

Is one the redemption figure, which hasn't taken into account last months payment and this, just due to how the months have fallen?

[jayymannon]

Hi,

Thank You for the reply.

Both are the 'current' mortgage balance, just that the lower amount was last week before the interest for May was applied and the higher value is the new current balance after interest applied.

But the difference between the two is higher than the interest amount??

I'm so confused.

[Sarnie]

It's very difficult to say whats happening without seeing the statements themselves.

Did the previous months payments/balances match up?

[fid]

Is it the final interest payment at your previous rate + first at new rate?

For your example £60,786 + £354 + £315

[jayymannon]

I forgot I started this thread.

Turns out I was being an idiot.

I didn't realise that my bank adds the interest for the month ahead to the current balance.

For example, on 1st July the balance of my mortgage includes the interest for the whole of July even though this interest doesn't get added as a transaction until the end of the month.

Hence why when then interest rate changed the balance went up by more than I was expecting. I always just assumed that they added the interest to the balance at the end of the month.

Had the mortgage five years and never noticed this which isn't like me at all.

Anyway, at least it makes sense now, thanks for all the replies.