Can’t figure out my pepper mortgage interest is calculated

M

May#19

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I’m currently with Pepper for my Mortgage. I was a previous Bank of Scotland customer. I have a 1% tracker rate.

I’ve made many overpayments over the years and always get a letter to say amount received and new monthly payment however they’ve stopped this and now when I look on my pepper app I have the following totals.

Principal balance € 51959.31
Arrears balance € -13599
Total outstanding balance € 38359.87
Next payment amount €524.74

Pepper have told me my interest is working on the total outstanding balance but I paid €10000 last month and my interest went up not down. I think I’d an ECB . 25 increase last month but still I expected the interest to drop by some amount. I have 10 years left on my mortgage.

Can anyone tell me if the interest is correct I’m paying?

Interest the month before I paid €10000 was €145.31 interest after was €159.15. My mortgage date is the 20th but I always pay early on the 1st.

Thanks for any advice.
 
The Pepper online app, has very limited information, call them for more details.

It could just be a timing issue, on the interest.
 
Thanks, I did call pepper and they said the interest is based on the outstanding balance. I was wondering is there a formula I can do to check the correct interest amount in my mortgage balance?

The interest would have been approx 10 days before I paid the €10000 and 20 days after I paid it so I thought it would have reduced the monthly interest by something at least.
 
So are they saying your principle balance is €52K and they are charging you interest on this, which is probably why it went up if the eco rate went up? Are they holding the overpayment of 13.5K in a separate account to apply to the main mortgage until the moon is blue or something like that. Years ago banks used to hold excess payments unless you told them to pay it off the principle in writing. Maybe that had happened here?
 
It look roughly correct. The interest rate has increased by a larger percentage than the portion of balance you've repaid.
I'd be happy to recalculate the interest for you later if you're comfortable sharing details with me (by PM) of balance at start of year, repayment amounts & dates.
 
ECB went up by 0.5% in March so your ECB+1% was then at 4.5% when it was implemented in April.
the increase of 0.25% occurred this month so your rate when it is implemented will be 4.75%
 
I’m still not clear on this. Are Pepper charging interest on the full principle balance not taking into account the extra repayment made by the OP. Surely he/she should only be paying interest on the 38k which reflects the overpayment ?
 
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