Interest payment increased on fixed rate

*Apologies - incorrectly posted this earlier as a reply on another thread.

Hi there, we recently requested a breakage fee from AIB - we’re in year 3 of 5yr fixed 3.3%. Breakage fee is €400. However our latest quarterly interest is up instead of down. It’s usually down €20 or so each quarter but this quarter it’s up €15 - so a discrepancy of about €35. We queried it and were told it’s because of the leap year and the extra days in the quarter. Surely that shouldn’t be worth €35?!!

How big is your mortgage? What is the interest rate?

There’s €122095 left at 3.3%. I just thought that the interest every quarter should be coming down as we’re fixed?? This is first time interest has increased. It generally reduces by €20 every quarter. It was €1030 last quarter but €1045 this quarter. We pay €1117 each month. Maybe I’m missing something very obvious?!

Hi JulesAnne. To the best of my knowledge interest is charged daily on mortgages and bank loans.
Mortgage payments usually get paid on a specific date each month. But months vary in length so going by a specific date each month gives a different number of days that interest is calculated at a certain capital balance. Each quarter the daily interest is added to the capital. I'm not sure if each "quarter" is actually a quarter of a year. That would make a difference too.
So assuming your daily interest is around €11 that would probably explain the differing interest charges.

That explains it -thank you so much for taking the time to figure it out and reply. Much appreciated x