mortgage statement question

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random10

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Apologies if I sound completely stupid but I'm very confused. We took out a mortgage last year over 30 years with boi. Got a statement today and am so confused I never thought the balance would go above the figure we took out. So basically opening bal of 265k two repayments made of 1340. There are two interest charged one in Sept of 751 and one in Dec of 2968. So now our bal is 266,040.

Do you get charged quarterly interest lump sums? I thought interest owed was included in your monthly repayments?
 
random10 said:
Apologies if I sound completely stupid but I'm very confused. We took out a mortgage last year over 30 years with boi. Got a statement today and am so confused I never thought the balance would go above the figure we took out. So basically opening bal of 265k two repayments made of 1340. There are two interest charged one in Sept of 751 and one in Dec of 2968. So now our bal is 266,040.

Do you get charged quarterly interest lump sums? I thought interest owed was included in your monthly repayments?
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What month did you take out your mortgage?

How come there are only two repayments, it must at least have been taken out in Sept so there should be at least 3.

Had the December one not hit the account before issue of the statement? That might account for the increase rather than a decrease.
 
What date in 2014 did you take out the mortgage in 2014. It looks to me that you took it out end of August early Sept?.
Is the Interest up to 30/09/2014 & 31/12/2014.
Looking at your final quarter It looks like you have an SVR mortgage at around 4.25% or 4.5%.
Why have you only made 2 repayments. It should be at least 3 or 4 repayments.
This is where the problem lies.
 
Opening date 27th Aug first repayments 28th Oct and 25th Nov. Dec hadn't been taken out by date of statement as it says outstanding bal on 19th Dec is 266k. There is enough money in acc for payment
 
Was first payment deferred or something? Should have been end Sept so that's one less than normal and the fact that the Dec one wasn't in before statement date would account for the other one. Had there been 4 payments your balance would have been down on starting balance at end of year.
 
There should have been a repayment in September. Why did this not happen. I am not familiar with BOI Mortgage statements so what date does your Mortgage statement go to. My own bank does the Mortgage statement up to the last day of the year. My mortgage is taken out mid month. Anyway you would have a balance of less than 265k if the 4 repayments had to be taken. That is why you are showing more owed than you originally borrowed. You need to clarify with the Bank why this happened and not end up with a Cr problem which does not seem to be your fault.
Can you clarify why no repayment was made in September 2014.
 
This happened to be as well and I was very confused too. Basically what happened in my case was the difference in drawdown date and first payment. My drawdown date was 1st March first payment 29 April. So what happened was the interest was charged Mar and Apr but only one mortgage payment so my mortgage balance went up instead of down. This will work out after a few payments and balance will come down.
It's a valuable lesson that the bank is always charging interest. If you changed your payment date from 1st of month to end of month they're still charging you interest per day so you will lose out as the interest for the days between payments will be greater than payment, effectively adding to the principal amount.
 
I don't know why there was no payment in Sept we didn't officially get house til 5th Sept. We got a letter saying first repayments would be made in Oct.
 
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