villacoyle
New Member
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No lender capitalises interest in advance.the balance at August 1st would then have interest applied on August 1st for the month ahead based on that August 1st balance.
Thank you RedOnionNo lender capitalises interest in advance.
Just ask AIB for a statement, and work it out from there. The customer service agents do not have unlimited access to systems, so don't be surprised if they don't have access to a specific data point.
Really? I thought they were on legacy products and had stopped years ago.AIB calculate interest on the 1st of every month for the coming month.
Really? I thought they were on legacy products and had stopped years ago.
AIB calculate interest on the 1st of every month for the coming month. If you then make a repayment during the month they will pass an interest adjustment to reflect the overpayment as your monthly payment reduced the balance at some stage during the month.
Where are you getting that from?
Do you have a very, very old mortgage?
I looked at my mortgage and they add the interest to the mortgage around the middle of the month. I assumed that they calculated it on the daily balance and added it once a month.
I never saw an interest adjustment on my account, but I never made a repayment outside the monthly repayment due.
Brendan
I stand corrected. It's very unusual in Ireland for systems to still do this, and the wording on the AIB hub is not very reassuring for anyone digging into it:I used to have a tracker with them and that's how it worked. It's also confirmed on the information hub for transferred mortgages. They do calculate it daily but it is added in advance. Maybe its just for tracker mortgages for some reason?
I stand corrected. It's very unusual in Ireland for systems to still do this, and the wording on the AIB hub is not very reassuring for anyone digging into it:
"Is there a difference in how interest is calculated?
- Your mortgage repayment amount will carry over to us. The way in which interest is charged to your mortgage loan account will operate differently to Ulster Bank. This is expected to have a small impact on the amount of interest you pay over the life of the loan however if this is the case AIB will refund the difference at redemption of your mortgage."
I stand corrected.
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