Quarterly interest went up this time around

veryangryman

Little bit miffed.

Tracker Mortgage, interest rate unchanged in over a year. Constant regular payments (including a few top ups). Each quarter, the interest paid seemed to go down roughly 10% on the previous payment. So if i paid 400 in December, it would be 360 in March etc.

However, this time around, the interest payment went up a little. I cant understand the maths of this. Compound interest would surely mean less interest on a smaller principle.

Was going to check with bank but maybe theres a simple explanation that im not seeing.

homer911

Have you lost tax relief at source?

veryangryman

homer911 wrote: »

Have you lost tax relief at source?

Not yet. Finishes after next year.

Nervous Wreck

veryangryman wrote: »

Not yet. Finishes after next year.

If you're getting TRS, the amount you pay for your mtg could go up slightly. Reason being, you get relief on the amount of interest you pay. As the principle goes down, the amount of interest you pay goes down, so the amount of relief you get goes down so, in some cases, the actual amount you pay out can go slightly up. Give the bank a call; if this is what happened to you, they should be able to identify it fairly handy. If that's not it, I can't think of what else coulda caused it though...

Patrick Wheelock

quarters might be uneven

92
91
84
98