Redemption cost BOI tracker mortgage

[Jonathan]

Need some help understanding redemption totals on a tracker mortgage:

A] Redemption date 22/2/08
B] Current balance (22/2/08) €194739.04
C] Interest Accrued to redemption date A] above €1725.39
Total balance due: €196464.43

Daily interest accrual: €27.21
Mortgage paid on the 7th of the month

If the balance for redemption is B] what does C] refer to and is it not included in B] anyway?, and what period would the accrual in C] refer to given that the monthly annuity mortgage payment is €1227.82, 1.1% on top of ECB rate tracker. Would just like a simple explanation, which is not easy to get from the bank's call centre.

 

[Dreamerb]

Need some help understanding redemption totals on a tracker mortgage:

A] Redemption date 22/2/08
B] Current balance (22/2/08) €194739.04
C] Interest Accrued to redemption date A] above €1725.39
Total balance due: €196464.43

Daily interest accrual: €27.21
Mortgage paid on the 7th of the month

If the balance for redemption is B] what does C] refer to and is it not included in B] anyway?, and what period would the accrual in C] refer to given that the monthly annuity mortgage payment is €1227.82, 1.1% on top of ECB rate tracker. Would just like a simple explanation, which is not easy to get from the bank's call centre.

I can't do the sums for you, because there are a lot of variables missing. However, from my own dealings with BoI I think the following is the case:

Your current balance, , is the capital balance of the mortgage. On my Bank of Ireland tracker, interest is calculated daily, and charged quarterly. So I suggest that the current balance you are quoting at is the capital balance not including the interest which has accrued in the last quarter. All I can say for sure is that the figures above don't actively contradict this.

I don't know precisely when BoI charges interest, but I think it's around the twentieth or thereabouts of every third month. That is borne out by the figures - i.e. 1725.39 divided by 27.21 is about 63.4, and if you take 63 days from 22 Feb that brings you back to 21 December.

My best guess (and it is just a guess) is that interest was last charged in December, that the capital balance - your figure at - is the amount you owed on that date less the full nominal value of any mortgage payments since, and that the final amount, [C], is the interest for about two months. They should be able to send you out the details for your records, and of course to make sure the charges are correct.