Query about Pepper and outstanding balance/principle

[Susie2017]

Hi. I have my PPR mortgage with Pepper, previously Danske and NIB. Over the years with Danske I made a number of ad hoc overpayments and these always reflected instantly on the balance. I have noticed, particularly after using their online platform for the first time ( was not aware of its existence until today) that they have two separate balances. One is the outstanding balance and the other is a higher (incorrect) principle balance. Would anyone know what I am being charged interest on and why have they two separate balances ? Wha is the purpose of the principle balance ? Any advice welcome.

 

[RedOnion]

Hi Susie,

This is very much connected with the letter you got a few weeks ago about your overpayment.
You should be charged interest on the lower balance in your case since you've overpaid.

Without knowing much about the specifics, it appears this is a scenario that prevented Pepper issuing statements last year, and you might find a interest refund processed on your account once it's all sorted out.

 

[Susie2017]

Thank you Red Onion. I will give them a ring. I didnt reply to that letter yet as i never got around to it.Hopefully January statements will make things clear. Im not sure why they are stating a principle balance or what purpose it serves. Other than to confuse !