# Outstanding Mortgage Balance seems wrong



## The Messer (13 Feb 2019)

I Have a tracker mortgage but the balance seems off so looking for reassurance.
Never missed a payment, infact never had any contact since draw down, apart from annual statement

Borrowed 355k in sept 2006 - 1st repayment Oct 2006
Current rate 1.68% - Not sure if the rate has an impact on what the balance is, or does it? 
30 year term
Current balance outstanding 240,700

Looked at a couple of online calculators
eg  drcalculator website says my outstanding balance is  229,344
mortgagecalculator website says my outstanding balance is 230,267

Am I missing something here or should I be getting on to the bank? I'd rather know my facts first as it is very easy for them to fob me off and say no its all correct unless i can back myself up.


Does the 240,700 figure seem right to yo people that probably know more than me
Does the changing interest rate have an impact on the outstanding balance?


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## RedOnion (13 Feb 2019)

The Messer said:


> Does the changing interest rate have an impact on the outstanding balance?


Yes, on an annuity the lower the interest rate the more principal you are paying.
You could approximate it using an average rate, but you'd need to model it Excel to do it perfectly.
Once the bank appliecd correct interest rate it's extremely unlikely that there is an error in the calculation.


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## The Messer (13 Feb 2019)

RedOnion said:


> Yes, on an annuity the lower the interest rate the more principal you are paying.
> You could approximate it using an average rate, but you'd need to model it Excel to do it perfectly.
> Once the bank appliecd correct interest rate it's extremely unlikely that there is an error in the calculation.



Thank you. 
so when my initial interest rate of 4.8% was in play I was paying less capital, resulting in a larger outstanding balance now?
This balance is currently 10k higher which begs the question when are they going to hit me for it??


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## RedOnion (13 Feb 2019)

The Messer said:


> which begs the question when are they going to hit me for it??


They already are.
With an annuity repayment, every time the interest rate changes the system will recalculate how much you need to repay monthly to fully clear the current balance, at the current rate, over the remaining term.


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## demoivre (13 Feb 2019)

For a fee [broken link removed] check mortgages for overcharges. If their tweets are anything to go by they uncover substantial overcharges on mortgage accounts.


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## NoRegretsCoyote (13 Feb 2019)

Post the details of all annual statements, including the months the rate changed, and someone here will be able to give you a ballpark idea if the balance is right.


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## RedOnion (13 Feb 2019)

demoivre said:


> For a fee [broken link removed] check mortgages for overcharges. If their tweets are anything to go by they uncover substantial overcharges on mortgage accounts.


If they're charging 400+ they'd want to have some success stories!


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## Clare12 (13 Feb 2019)

Download Karl's Mortgage Calculator, there is an option to input multiple % rates, so if you have the paperwork and know when rates changed, this should give you a good idea if the figures tally.


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