Uncertainty over balance on mortgage after overpayment

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windo77

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I regularly make overpayments on my mortgage with PTSB.

A few days after I make each overpayment, PTSB write to me to tell me the new balance. However, this value is always greater than the balance quoted when I log in to my account on the internet.

At the moment, the 'letter balance' is greater than the 'internet balance' by about €139 but in the past, it has been greater by as much as €900.

Can anyone tell me why the two balances differ and why the difference should vary?

I could ask PTSB these questions but in my experience this site is much more forthcoming with information on PTSB mortgages than PTSB are!
 
I'm not familiar with PTSB but it is possibly due to interest calculations. When a repayment is made, the capital can reduce by the full repayment. After a certain time (up to a couple of days) the interest is applied which increases the capital. The method can vary but the balance can be recalculated. The internet balance could also vary due to daily interest rates.

You could also make sure that your full overpayment is being deducted rather than it building up and being applied at certain intervals.
 
You should write to the bank telling them that you want all your overpayment taken directly off the capital. Or have you done this already? If nt, clarify this in the letter to them.
 
Thanks, for your replies.

When making the overpayments, I always instruct PTSB to use all of the overpayment to be used to reduce the balance of the loan.

And as far I can see, that's what they do. If I make an overpayment of €1500, for example, the balance quoted when I log in to my account on the internet is €1500 less than that when I made the previous overpayment. But the letter I receive in the post gives a higher value for the balance.
 
windo77 said:
Thanks, for your replies.

When making the overpayments, I always instruct PTSB to use all of the overpayment to be used to reduce the balance of the loan.

And as far I can see, that's what they do. If I make an overpayment of €1500, for example, the balance quoted when I log in to my account on the internet is €1500 less than that when I made the previous overpayment. But the letter I receive in the post gives a higher value for the balance.
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Does the internet balance increase daily?
If not, then [as hinted at by PM1234] perhaps the "letter balance" includes the interest accrued since the last payment, whereas the internet one doesn't until the next charging date for interest. [e.g. on my mortgage, interest is calculated daily, charged quarterly - so it looks online as if it's reducing wonderfully, until end of the quarter where it all gets a little more gloomy again!]
 
The internet balance remains constant until the next payment (regular or over) is made.
 
I reckon that's your explanation then - your letter includes the accrued interest in giving the new balance, whereas your online balance does not, because the interest isn't included until charged. It should all work out more or less the same.
 
Every time I make an overpayment I ask them to issue a mortgage statement of account for my records.
 
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