4 mortgage repayments later and owe more than I borrowed?

[musicfan]

Hi all

Hoping someone can help..........

I took out a mortgage in August - drawn down on 05/08 with a value date date of 1st August 2008. The first repayment was not due until 30th September.

Have just received a statement for 2008 from lender and as at 31/12/08, I now owe more than I have repaid, despite making four payments in 2008.

We were charged insterest on 29th August and 30th September but the first payment was made on 30th September.

I am just wondering is this right? Should the lender have taken a payment at the end of August? Does this happen all the time with mortgages?

I know this is because the interest was charged in August but no payment was made but I'm just surprised that after making 4 payments I still owe more than I borrowed in the first place! I know most of the repayments are interest and very little capital but I thought the repayments made so far would have at least reduced the capital by a miniscule amount!

Thanks

 

[tiger]

It looks like you effectively skipped the first months payment (only started paying 2 mths after it was drawn down), so this has probably bee added to the balance.