Hi,
Is there a fixed formula to calculate the amount of interest to be applied to the mortgage? I am pretty sure my bank has applied to much interest to my mortgage account this quarter.
I am on a tracker so the rate has not moved, and yet the interest applied has gone up this quarter as against the previous three quarters, I had not missed any payments or made any late payments, so I don't think the interest could possibly have gone up?
I have calculated by using the formula - principle x interest rate x number of days/365, and I have got a lower figure than the interest actually applied to the mortgage.
I am just wondering if there is a specific formula, I don't necessarily want to bring this to my banks attention until I am certain that the error is that they have charged me too much this quarter (rather than they had charged me too little interest in the past!).
Thanks,
Donal