Overcharging on fixed rate mortgage

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odium

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Date: Description: Debit: Credit: Balance:
16/03/09INTEREST CHARGED 3,409.65
16/03/09 (INCL. SURCHARGE-16/03/09INTEREST 0.00) 275,838.03 DR
27/03/09 LOAN REPAYMENT 1,453.45 274,384.58 DR
27/04/09 LOAN REPAYMENT 1,453.45 272,931.13 DR
27/05/09 LOAN REPAYMENT 1,453.45 271,477.68 DR
16/06/09 INTEREST CHARGED 3,628.09
16/06/09 (INCL. SURCHARGE-16/06/09INTEREST 0.00) 275,105.77
29/06/09 LOAN REPAYMENT 1,453.45 273,652.32 DR

Fixed rate mortgage (5.150% APR). The fixed rate will end next year. The mortgage is on a private prinicipal residence. The mortgage is a couple of years old. The interest repayments are increasing (3409.65, 3628.09). I though they should decrease. The mortgage rate is fixed??

Sorry about the font tried to fix it. but it keeps changing when I post it.
 
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Could it be that the interest is charged by multiplying the days ? Dec to March has less days than March to June ?
 
I'm not so sure. The interest amount rose by 6%. There are not enough extra days to warrant such an increase.

However, the key date is that of the previous interest calculation. It is not given above. If it is the 16/12/08 then the interest periods are:

17/12/08 - 16/03/09 = 90 days
17/03/09 - 16/06/09 = 92 days

This would give rise to just over a 2% increase in interest, but would be slightly offset by the fact that the interest is being calculated on a fractionally lower amount.

The date of the Decemeber interest amount is key. If this was the 16th then it seems there may be an issue alright. If it was a couple of days earlier then it suggests there is little amiss.
 
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