Irish Nationwide mortgage statment, confused!

M

MelF

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Any other IN mortgage holders know how to make head or tail of the statement? Got mine yesterday, the mrtg is interest only and the figure in the balance column is what I expected. However there is a figure of approx -9,000 euro in the Payments Balance column, pretty much the same figure every month for the last year.

Following on from my recent thread about an increase in monthly payment following TRS changes, I rang them and they said it was because I overpaid the mortage in the past. This is true yes, before I went interest only I was paying about 300 pm extra over a few years. I presumed that this extra payment was knocked off the balance but now I'm wondering if this minus figure of -9k is my extra payments built up over time?

Naturally enough I rang the IN, but the guy who I spoke to couldn't make head nor tail of it either at the time, and said he'd have to ring me back.
Very confusing altogether.....
 
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Did you tell IN that you were going to overpay the mortgage and to use the extra payments to reduce the balance?
 
That's probably the problem here - unless you explicitly tell your lender that you will be making accelerated lump sum or regular capital repayments there is no guarantee that they will be paid off capital immediately. In most or all cases in the absence of such explicit (ideally written and acknowledged) instructions the overpayments may just be held as a credit on the account but not set against capital.

Also - do INBS still calculate interest annually on some or all mortgages - there were the last to persist with this as far as I know? If so then making accelerated capital repayments more frequently than annually gives you no benefit in terms of reducing your interest costs.
 
It was some time ago since I did this, so I can't recall if I explicitly told them about the overpayments at the time and I haven't overpaid for a while.

Clubman, not too sure if the interest in calculated monthly or annually, looking at the statement it looks like both!! But then again, part of it is a remortgage so it looks like they calculate int monthly on this, and then yearly on the original amount. Confusing statment though.......
 
Irish Nationwide in confusing statement/announcement/rules/charging mechanism/future intentions (delete as appropriate) shocker!
 
Well, I finally got some answers. Irish Nationwide tell me that the minus figure is an 'arrears credit' because I overpaid by that amount (9k) in the past.

According to them it has come off the capital, but has thrown the orginal repayment schedule into chaos which means that when I repay the mortgage in full, they will need to issue me a cheque for the arrears credit amount of 9k. So my net situation would mean that I pay 9k less that the mortgage balance showing on the current statement!

Apparently this refund would not be issued until a week or two after the full balance is cleared. Clear as mud, isn't it? But I'm happy with the explanation as it means my mortgage is essentially 9k less than I thought
 
Totally unintelligible to me too! Ask them to put the explanation in writing. Then you can query that and if you get no joy (and get a final response letter from them having exhausted their complaints process) you could always take a complaint to the [broken link removed] if necessary.

On the one hand I think that INBS have always had issues with their IT systems and management of accounts but on the other hand they do have quite a poor track record in inadvertently or deliberately overcharging people so you are as well to get to the bottom of this matter.

By the way - somebody has told me that INBS should be calculating interest daily these days. They were the last to do it annually as far as I know - EBS changed from annual to monthly a few years ago and were the second last.
 

Will make sure to get this in writing Clubman, thanks for the advice.
 
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