Paid more interest this month despite overpaying & changing to lower rate

[haventabreeze]

Hi, I was wondering if somebody could help me understand a circumstance as to why I may have been charged more interest on my mortgage this month than last month.

I'm with Ulster Bank and have my mortgage split across two sub accounts. One is fixed at 2.6% for 4 years. The other I changed last month from 3.35% to 2.3% for two years. I went from a payment of €1391 to €1301 per month & I'll be working to bring that down further by overpaying each month. Last month I overpaid by €300.

Despite this, I have been charged €88 more this month in interest. Considering the over payment and the drop in interest rate and the general way compound interest works, I can't get my head around what would have led to this? I will be contacting UB but I was wondering if anyone here can shed some light.

I can't find an email address for them, if anyone has one, I'd appreciate that too - I'd prefer to keep a paper trail as I've had other issues around them continuously taking my over payment from the lower interest sub account even though I've specified the higher one.

Thanks in advance.

 

[Brendan Burgess]

What date do Ulster Bank debit the interest to your account?

For example, do they charge it for January and debit it in early February?

If you are comparing November with December, November has one day less.

Dec and Jan should be the same.

Brendan

 

[Monbretia]

The interest is calculated daily and charged monthly so whatever date that interest was debited it was for the previous month.

 

[haventabreeze]

Thanks for the replies & apologies for the delayed response - took a few days for me to get around to calling them.

Turns out my maths was off and I actually paid over €100 less in interest between the two months. Which is great news!

Now I’m off to work on my adding and subtracting...