# Confused with tracker mortgage yearly statement.



## Marantz (16 Dec 2019)

I have a mortgage on an investment property at ecb  +1.3 taken out in mid 2000s for 285000 euro.
Variable rate.
25 year term, 10 years interest only  then full repayments for 15 years.
Looking at an yearly statement from the bank- 2017, in this instance -it shows quarterly amounts  being added to the total balance while the 12 monthly mortgage payments remained the same at 1,748.89 for that year. 
 I always assumed that the 1,748 was capital and interest on 285k for the remaining 15 years at 1.3%

But then 4 quarterly debits of decreasing amounts -833,  837 ? 822, and 800 -in that order was added to the  balance which is totals around 1.3 % too.
Would someone point out what I'm missing?


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## RedOnion (16 Dec 2019)

Very standard statement, with quarterly interest capitalisation.
Which bank? They might have an explanation of their statement.

Every month your repayment is reducing the principal balance by the full amount of the repayment, and then they charge the interest once every 3 months.


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## Marantz (16 Dec 2019)

Thanks
It's  with Bank of Ireland.
So the 1,748 is just pure capital repayment before interest?
The statement itself just says repayment , while a statement from 2013  - before full repayment started - says interest only combo.


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## RedOnion (17 Dec 2019)

I'm probably going to explain this really badly, so let me know if it doesn't make sense.

So, each month you're repaying 1,748
That's made up of:
1,470 capital
278 interest

But instead of charging you interest every month, they add the 278's together and charge after 3 months.
So the full 1,748 is reducing balance in months 1 & 2, but only 914 in month 3 because you're paying off the 3 months interest.


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## Marantz (17 Dec 2019)

Okay, I got it, you explained it well. 
Thanks.


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