Querying Mortgage Repayment Amount

S

Shallow Hal

Registered User
Messages
33
Hi,
A bit of history;We were an Irish Nationwide..then IBRC and now Bank of Ireland customer,
Recently received our Annual Mortgage Statement,our first from BOI but have a query over our monthly repayments and interest rate,
Our balance is €46948.52 with 7.5 years left at an interest rate of 3.65% and currently paying €617.35 per month ,house value approx €175,000,
When we were with IBRC,our monthly repayment was also €617.35 and that amount continued when BOI bought our mortgage,
According to their online calculator we should be paying €597 per month and i need to put in a rate of 4.58% to get to what our current monthly repayments are,i know online calculators can be a bit iffy but a €20 per month difference seems a bit steep,
I wanted some advice from professionals before i contacted the chancers,

Regards,
Hal.
 
90 mths left @ 3.65 does make 597.
.................................
Write and ask what APR rate you are on .
If its 3.65 , by paying 617 your mortgage will be paid off earlier than 90 mths.
So things will even out by you having a shorter term.

Could it just be they kept the 617 going rather than adjust to follow rates ? or might you be some way locked into 4.58% .
If its 4.58% and you reckon it should be 3.65% then that needs checking but confirm rate first.

Hope this helps.
 
Hi Hal


It's best not to worry too much about the repayments. The key issue to check is whether they have calculated the interest correctly.

Check that out first. If you are paying too much interest you lose out.

If your repayments are too high, but the interest charged is correct, your mortgage will be paid off earlier.

The Irish Nationwide's books were always a mess, so I wouldn't be surprised if there has been an error. Having said that, I would say that Bank of Ireland has checked these.

I presume the statement includes a monthly or quarterly interest charge.

I have checked a few and can get it to the cent when you allow for the different numbers of days in the month.

If it's not correct, then write to BoI and ask them to show you the workings for each month's interest in 2016.

Brendan
 
Thanks for your replies gents,
@Brendan,you are correct with regard to the statement with monthly interest charges provided,we also received a seperate Certificate of Interest last week which tallies with the amount charged on the statement,

Hal.
 
Can you figure out if the interest charged is calculated correctly?

If so, then the other point is a bit academic. By all means seek an explanation, but you are not losing out.

Brendan
 
Brendan,
TBH,i wouldn't know how to calculate if the interest was charged correctly...i need to educate myself.
 
Balance at start of January €100,000
Mortgage rate 3.65%
Number of days in January
Interest charged for January = €100,000 @3.65% x 31 days/356 days
= €317.83

In words
€100,000 at 3.65% is €3,650 per year in interest
As there are 365 days, that is €10.25 interest per day
If there are 31 days since the last day interest was charged, it should be €317.83
If there are 28 days it should be €287

Brendan
 
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