Mortgage questions for people in the know

Skyrimaddict

Hi all,

I have a mortgage question that my bank seems to either not know or not tell me.

I have a 10 year fixed rate mortgage at 3%. I'm in year two of it.

I'm also overpaying by 10% which is the most I am allowed to.

I got a two year statement now as I requested one.

My internet added to each quarter seems to have not only stayed the same, but increased in a 12 month period. It went from 1100 in Q4 of 22 to 1112 in q4 of 23.

This should be despite a reduced capital borrowing, plus over payment.

Anyone who knows more about this stuff please feel free to give me some guidance

Thanks

Anaki r2d2

Typo I believe. You say Internet, I assume you mean interest.

Your bank should be able to answer this. The interest should not increase. Even by 12 euro.

FYI, you can over pay more, dependant on the bank. Call them to ask if that is relevant to you.

Buddy Bubs

On the face of it, fixed rate, overpayments etc you sound correct.

Mine decreases slightly each period due to reduced capital, no idea why yours isn't the same

Sounds like either an error in year 2 or a correction of an error in year 1, either way there should be no problem with getting communication from your bank on this, but you do seem to be having problems getting onto them.

Liam O

It could be that there were more days applied this year than last year depending on the way the weekends fell. It accrues daily and is applied quarterly but a quarter could be 90 days or 93 days depending on the dates. Is it consistently higher or is this an anomaly?

Skyrimaddict

Yes,

Typo, sorry..won't let me edit in the phone.

Skyrimaddict

On the bank communication, I just find the bank seems to have lots of young staff who struggle with answering.

I have asked for a senior mortgage person to calle back.

On the overpayment, the bank themselves said as it's fixed rate I can only do 10%

Q&A

https://www.boards.ie/discussion/comment/121656040#Comment_121656040

Its poor use of language on their side..10% is the max you can overpay without triggering a break fee calculation.

If you fixed 2 years ago every chance that break free will be zero given where interest rates markets have gone .

If you want to overpay by more or just curious, ask them to provide a break fee estimate. It'll likely require more than a young staff member reading from a script. The break fee is not fixed and will move with market interest rates but sounds like you fixed at the right time.

The higher interest charge does seem a little odd. My first thought was how the days fell. Maybe it would be better to look at the full year.

When did you make your 10% overpayment I would expect that to make a dent? Remember interest is calculated daily so if you paid it at the end you it'll be the following years you see the savings.

Skyrimaddict

https://www.boards.ie/discussion/comment/121657135#Comment_121657135

Hi,

I have been overpaying for a full year, December 22 until now. Its why I said I would look for a two year statement to see how much of s difference it was ( or not, apparently) making.

I know its well gone, but I do laugh at who they say APR, Annual percentage rate, then charge interest daily.