Actual maths or taking the mick

polydactyl

I am changing main banks so rang AIB to move the mortgage DD from one bank to the other. In order to give me time to transfer the money I asked that the payment date move from the 2nd of the month to the 5th. They told me it would be an extra 5.60 a month for this one off 3 day delay???? So an extra 1500 approx over the Mortgage. On a tracker 1.1 over ECB and 370000 on Mortgage and 24 years.....is this actual maths or let’s get any penny we can any way we can by AIB??

Bubbaclaus

You're paying 3 days later so there is an extra 3 days of interest accruing on the entire outstanding principal per month every month for the rest of the mortgage

homer911

Sounds like they are moving every future DD, not just the one you have requested - You should clarify with them, or just let the DD be set up as you want. Banks will typically represent a DD on a mortgage a few days later when it fails the first time

893bet

Bubbaclaus wrote: »

You're paying 3 days later so there is an extra 3 days of interest accruing on the entire outstanding principal per month every month for the rest of the mortgage

No.

One month only will have an extra three days. There are be same number of days in the month still...

Bubbaclaus

893bet wrote: »

No.

One month only will have an extra three days. There are be same number of days in the month still...

From the OP i gathered the DD is being moved to the 5th permanently rather than for just 1 month?

Its not about how many days are in a month. There will be 3 extra days of interest accumulating on the principal per month for the next 24 years.

kaymin

Bubbaclaus wrote: »

From the OP i gathered the DD is being moved to the 5th permanently rather than for just 1 month?

Its not about how many days are in a month. There will be 3 extra days of interest accumulating on the principal per month for the next 24 years.

Assuming it's a permanent move, it's 3 extra days of interest on the current loan balance, once only (not per month).

Heres Johnny

His entire mortgage will be cleared 3 days later than expected, his last payment in 24 years time will be 3 days later.

Does this warrant a charge of 1500?

kaymin

Heres Johnny wrote: »

His entire mortgage will be cleared 3 days later than expected, his last payment in 24 years time will be 3 days later.

Does this warrant a charge of 1500?

Unlikely unless he has a humongous loan. 3 days interest on an outstanding loan balance of 300k @ 4% is only €98. There's the interest on interest effect but that would bring it up to no more than €200 over the loan term

Edit - compounding monthly brings the extra cost to €256 over the loan term in my example.

Edit #2 - and using the OP's figures the extra cost over the loan term is €44 but it's unlikely you would get the tracker rate for the extra term (3 days) you extend the loan out for.

M5

Moving the dd date back 3 days means that your mortgage is paid off 3 days later. That means that you are paying 3 days later every month and you pay interest by the day. Your original agreement was based on you paying on that day.

Maybe just keep it on the same day or go 3 days earlier?

vandriver

M5 wrote: »

Moving the dd date back 3 days means that your mortgage is paid off 3 days later. That means that you are paying 3 days later every month and you pay interest by the day. Your original agreement was based on you paying on that day.

Maybe just keep it on the same day or go 3 days earlier?

The second month is precisely one month later than the first month ie there is no '3 days later' apart from the first payment.

uck51js9zml2yt

OP I know it's a difficult concept, but have you asked the bank what the story is,?

My guess is that they would know the answer.!!

myshirt

How did you get a mortgage? I need to find that person and beat the absolute sh't out of them. You never should have been sold a mortgage if your knowledge is that appalling. These are professionals and it is unethical to be lending like that.

Heres Johnny

myshirt wrote: »

How did you get a mortgage? I need to find that person and beat the absolute sh't out of them. You never should have been sold a mortgage if your knowledge is that appalling. These are professionals and it is unethical to be lending like that.

Is that directed to the OP?
How about you contribute rather than ask why the OP isn't a mortgage expert just because they have one.
Should they be allowed own a car in your opinion?

Bubbaclaus

vandriver wrote: »

The second month is precisely one month later than the first month ie there is no '3 days later' apart from the first payment.

Every single payment is 3 days later. Compound interest is being calulated for an extra 3 days for every single month for the next 24 years.


Judging by some of the posts in this thread they should really teach this stuff better in school...

myshirt

Heres Johnny wrote: »

Is that directed to the OP?
How about you contribute rather than ask why the OP isn't a mortgage expert just because they have one.
Should they be allowed own a car in your opinion?

The answer has been given Johnny. No mortgage experts here. This is basic. Very basic. And extremely reckless to be lending to a person like that. I put it in the same category as a scenario where Provident would lend to a random homeless guy on the side of the street at 70% of an interest rate. It's completely unethical for people to behave like this and lend to people so, so bereft of basic knowledge. It's just not on in my view.

Abel Ruiz

kaymin wrote: »

Assuming it's a permanent move, it's 3 extra days of interest on the current loan balance, once only (not per month).

That makes sense to me.
The second month's payment is exactly 1 month after the first month's.

Bubbaclaus

Abel Ruiz wrote: »

That makes sense to me.
The second month's payment is exactly 1 month after the first month's.

Do i need to explain it again....

Every single payment is 3 days later for every month for the next 24 years. There is compound interest accumulating on the principial for an extra 3 days every month for the next 24 years.

The OP has moved back 24 years of payments, not 1 month.

This thread is pissing me off now.

Try_harder

Bubbaclaus wrote: »

Do i need to explain it again....

Every single payment is 3 days later for every month for the next 24 years. There is compound interest accumulating on the principial for an extra 3 days every month for the next 24 years.

The OP has moved back 24 years of payments, not 1 month.

This thread is pissing me off now.

imagine how the guy/gal in the bank feels!

Try_harder

Abel Ruiz wrote: »

That makes sense to me.
The second month's payment is exactly 1 month after the first month's.

the final payment date is now 3 days later- thats a lot of interest to accrue

Heres Johnny

myshirt wrote: »

Heres Johnny wrote: »

Is that directed to the OP?
How about you contribute rather than ask why the OP isn't a mortgage expert just because they have one.
Should they be allowed own a car in your opinion?

The answer has been given Johnny. No mortgage experts here. This is basic. Very basic. And extremely reckless to be lending to a person like that. I put it in the same category as a scenario where Provident would lend to a random homeless guy on the side of the street at 70% of an interest rate. It's completely unethical for people to behave like this and lend to people so, so bereft of basic knowledge. It's just not on in my view.

I changed my mortgage date twice due to changing jobs.
First I moved it from the 20th to the 10th and I didn't get a reduction in monthly payment.
Then I moved it from the 10th to the 29th and didn't get hit by a big monthly increase.
In neither case did my monthly payment change.
Mortgage will still be cleared in the same month 20 odd years from now if I just stick to the payment structure.
You've mentioned beating up the mortgage advisor, told the OP they shouldn't have a mortgage and compared them to a homeless person getting a high interest loan for asking a question and haven't contributed anything concrete since you are so sure.

Put it this way, is someone taking out a new mortgage offered different monthly payments based on the day of the month they want to pay it? If they were then every mortgage in the country would be paid on the 1st

Bubbaclaus

Heres Johnny wrote: »

Put it this way, is someone taking out a new mortgage offered different monthly payments based on the day of the month they want to pay it? If they were then every mortgage in the country would be paid on the 1st

This literally makes no sense unless you are making the outrageous claim that every single mortgage in the country starts off on the 1st of the month.

sydthebeat

Bubbaclaus wrote: »

Do i need to explain it again....

Every single payment is 3 days later for every month for the next 24 years. There is compound interest accumulating on the principial for an extra 3 days every month for the next 24 years.

The OP has moved back 24 years of payments, not 1 month.

This thread is pissing me off now.

The op has moved 24 years of payments by 3 days.

So it still should only be 3 days of interest.

Its not 3 days every month for 24 years.

Bubbaclaus

sydthebeat wrote: »

The op has moved 24 years of payments by 3 days.

So it still should only be 3 days of interest.

Its not 3 days every month for 24 years.

Oh ffs.

I give up. I'll let someone else get pissed off and try and explain how very basic loan interest works.

Heres Johnny

Bubbaclaus wrote: »

Heres Johnny wrote: »

Put it this way, is someone taking out a new mortgage offered different monthly payments based on the day of the month they want to pay it? If they were then every mortgage in the country would be paid on the 1st

This literally makes no sense unless you are making the outrageous claim that every single mortgage in the country starts off on the 1st of the month.

If I moved my payment from any other date in the month to the 1st (which I could do) would I be offered a reduction by the bank every month in line with the increase the OP has been charged?
The answer is certainly no.

Another question.

If the OP wanted to change his payment from the 2nd to let's say the 29th like I did, would he be charged an extra 45 or 50 euro a month making his mortgage 15, 000 derarer? The answer again is no.

That's the logic a few of you are following I've just expanded on how it's not how mortgages behave.

Heres Johnny

Bubbaclaus wrote: »

sydthebeat wrote: »

The op has moved 24 years of payments by 3 days.

So it still should only be 3 days of interest.

Its not 3 days every month for 24 years.

Oh ffs.

I give up. I'll let someone else get pissed off and try and explain how very basic loan interest works.

Thank you. Preferably someone else that actually knows.

micks

Heres Johnny wrote: »

I changed my mortgage date twice due to changing jobs.
First I moved it from the 20th to the 10th and I didn't get a reduction in monthly payment.
Then I moved it from the 10th to the 29th and didn't get hit by a big monthly increase.
In neither case did my monthly payment change.
Mortgage will still be cleared in the same month 20 odd years from now if I just stick to the payment structure.
You've mentioned beating up the mortgage advisor, told the OP they shouldn't have a mortgage and compared them to a homeless person getting a high interest loan for asking a question and haven't contributed anything concrete since you are so sure.

Put it this way, is someone taking out a new mortgage offered different monthly payments based on the day of the month they want to pay it? If they were then every mortgage in the country would be paid on the 1st

I've changed mortgage several times and been with 3 or 4 lending institutions at this stage
Same as you I've changed DD dates with no issues

My current mortgage DD is paid on the 7th of the month and I know for a fact that payment is not taken off my mortgage until the end of each month


If interest is charged Daily and my DD is the 4th of the month and wont be taken out till next tuesday will I be hit for the extra days interest? :eek:

micks

myshirt wrote: »

The answer has been given Johnny. No mortgage experts here. This is basic. Very basic. And extremely reckless to be lending to a person like that. I put it in the same category as a scenario where Provident would lend to a random homeless guy on the side of the street at 70% of an interest rate. It's completely unethical for people to behave like this and lend to people so, so bereft of basic knowledge. It's just not on in my view.

you should roll out the pay your mortgage weekly not monthly story to save vast amounts on interest

Heres Johnny

micks wrote: »

Heres Johnny wrote: »

I changed my mortgage date twice due to changing jobs.
First I moved it from the 20th to the 10th and I didn't get a reduction in monthly payment.
Then I moved it from the 10th to the 29th and didn't get hit by a big monthly increase.
In neither case did my monthly payment change.
Mortgage will still be cleared in the same month 20 odd years from now if I just stick to the payment structure.
You've mentioned beating up the mortgage advisor, told the OP they shouldn't have a mortgage and compared them to a homeless person getting a high interest loan for asking a question and haven't contributed anything concrete since you are so sure.

Put it this way, is someone taking out a new mortgage offered different monthly payments based on the day of the month they want to pay it? If they were then every mortgage in the country would be paid on the 1st

I've changed mortgage several times and been with 3 or 4 lending institutions at this stage
Same as you I've changed DD dates with no issues

My current mortgage DD is paid on the 7th of the month and I know for a fact that payment is not taken off my mortgage until the end of each month


If interest is charged Daily and my DD is the 4th of the month and wont be taken out till next tuesday will I be hit for the extra days interest? :eek:

You've hit the crux of the issue there micks. Mortgage interest is indeed compounded monthly in both our cases.
Frequency on compounding makes a difference.
It could be applied monthly, weekly, daily, every hour, every minute, every second or even continuously which is the mathematical concept denoted by the letter 'e'
To OP, my mortgage is AIB too and this didn't apply to me so don't take it from them and ask how frequently your interest is compounded.
Don't listen to the 2 posters that haven't a clue and have just resorted to insulting other posters.

893bet

Bubbaclaus wrote: »

Every single payment is 3 days later. Compound interest is being calulated for an extra 3 days for every single month for the next 24 years.


Judging by some of the posts in this thread they should really teach this stuff better in school...

I think it hilarious that by moving three days forward that every month now has 33 or 34 days.

We should use this concept to create more days in the month in general.

Judging by some of the posts I wonder if they ever went to school....

There is a single three days that is being compounded. Someone else has worked it out already at 100 quid or so or if you compound it at 250 or so. 1500 it is not.

Bubbaclaus

893bet wrote: »

I think it hilarious that by moving three days forward that every month now has 33 or 34 days.

We should use this concept to create more days in the month in general.

Judging by some of the posts I wonder if they ever went to school....

There is a single three days that is being compounded. Someone else has worked it out already at 100 quid or so or if you compound it at 250 or so. 1500 it is not.

I weep for the Irish educational system. Some logic you got there.

Collie D

Bubbaclaus wrote: »

I weep for the Irish educational system. Some logic you got there.

Right or wrong, I hope you're not working in said education system if you're so easily annoyed when you perceive others as being wrong or not getting something.