EBS - Interim Interest on stage payments

Hi All

I'm getting a mortage from the EBS in stage payments. I'm paying interest only for the first year and know that there is more coming out of my account than there should be. After a lot of questionning at the EBS - they are putting it down to interim interest - anyone heard of this before - advice needed please!!

Jes

You can request that the EBS gives you a breakdown of what you've been charged.

For an interest-only loan, the calculation of each day's interest should be (Amount drawn down x interest rate /365).

So, for example, if you have drawn down €100,000 and the nominal interest rate is 3.25%, the interest payment would be 100,000 x 3.25% / 365 or €8.90 per day.

It may be complicated slightly by the fact that you are drawing down stage payments, so that in the one month you might owe €100,000 for 15 days, then draw down a €20,000 stage payment and therefore owe €120,000 for the balance of the month. But that shouldn't alter the mathematical basis.

Does this help?

Liam D Ferguson
www.ferga.com