Interest charged on Mortgage

boe

Registered User
Messages
104
Hi All,

I am an AIB customer and on the Standard Variable rate. Although we have had a rate drop in June and another one to come in October, the interest I was charged actually went up.

So, on 16th March, the quarterly interest was applied which amounted to 2,271.36. The rate was 4.15 at this stage and I had approx 225k outstanding before it was applied.

So, the rate dropped to 3.9% in June but the interest charged was 2,384.84. There was 223,113 outstanding before it was applied.
This doesn't make sense to me. If the interest rate has gone down, why has the interest charged gone up? Can anyone explain this?

Thanks in advance.
 
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