Mortgage overcharging / how to calc mortgage

T

taurus

Guest
Hi,

I heard mention that as a result of their overcharging investigations, AIB have discovered that they had been overcharging some mortgage account holders(I don't have the exact details as it was a work colleague who told me this - apparently this was stated in the business section of a recent sunday newspaper ).

Personally, I don't know how my mortgage repayment is calculated and how the repayment is then split between capital & interest. Anybody out there able to clarify? Just thought I would pick your brains before I ask my mortgage provider(EBS).
Thanks.
 
Karl Jeacle's mortgage calculator can be useful for estimating your mortgage figures but bear on mind that the actual figures may be subtly different due to stuff like the frequency with which the lender calculates interest (daily, weekly, fortnightly, monthly, annually), owner occupier mortgage interest relief etc. Don't be afraid to ask your lender to explain the calculations and to persist until you are satisfied with the answers and understand their answers.
 
I wouldn't bother. At least Karl Jeacle's calculator is freely available even if it doesn't deal with the specific nuances of every situation. I waded through all the crap on that site only to discover that they wanted US$99 for their calculator. The layout and content of the site didn't inspire confidence either. It looked like much of the spam that I receive.
 
Its not so much the repayment as the interest charge.
Most are now daily rate and debited monthly, quarterly or whatever.
Start with the balance when the interest was posted and work to the next.

If the nominal rate is 12% and the FI debit monthly for interest then what you need to do is test any one month based on the opening balance, the credits to work out the interest for the month which should be the amount debited.
 
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