Interest rate went down, our payment went up.

[Ontheborder]

I did a search and this has been asked before, but the solution was linked to TRS decreasing with interest rates..
Before the recent ECB rate drop, we had 41 payments left on our tracker, payment due was 850 including insurance.
The rate drop has been posted on the account, still 41 payments left, but payment due now is 852.
The two previous rate drops have seen approx 4 euro taken off our payments each time, until now, an increase of 2 euro.
I contacted EBS, The woman on the phone said they weren't trained on rate calculations and she would ask someone in a different department while I was on hold.
She read out the explanation, which didn't make sense to me ,or to her I think.
A letter of explanation of the calculations is on it's way to me, so I'd just like to know if anyone here has had similar, or can explain.

Thanks.

 

[Brendan Burgess]

The most common explanation is arrears but I assume you don’t have arrears? Or rescheduling?

 

[Brendan Burgess]

Write as follows
Despite interest rates falling my repayment has increased

Please provide the calculation showing interest rate,balance and remaining term for the repayment of 850 and for 852

 

[ClubMan]

including insurance

I presume you mean mortgage protection life insurance which should be a fixed premium for the lifetime of the loan? But do you (also?) mean home insurance which could vary in price from year to year? On the other hand if it was then presumably EBS would have been able to clarify that simply?

 

[Ontheborder]

Thanks for the replies, no arrears, no reschedule and the insurance is life which is fixed. I can see online that the payment is made up of 816.87 repayment plus 35.44 life insurance. Last month that was 815.02 plus 35.44.
There is a calculation letter on its way, I just wanted to sanity check I wasn't overlooking something obvious.
Thanks.

 

[RichInSpirit]

The increased amount could also be due to the different month lengths.
For example the previous payment having been a 30 day month followed by a 31 day month.
Also if your payment due date falls on a weekend or bank Holiday it normally doesn't go through until the next bank working day which could potentially add a couple of extra days interest onto a payment. But the following month should be then for a reduced number of days.

 

[ClubMan]

The increased amount could also be due to the different month lengths.

I assumed that @Ontheborder was referring to the revised ongoing regular monthly repayment after the rate cut?

 

[Brendan Burgess]

The increased amount could also be due to the different month lengths.

No. The interest charge varies each month. The repayment shouldn’t

 

[Monbretia]

Can you see online what is the amount of actual interest charged either each month or quarterly or however they do it. Not the actual repayment but what portion of that is made up of interest, that amount would change monthly based on the amount of days per month if charged monthly but would be easy to figure out if that is coming down or what way is it moving.