UB Tracker - no hist issues but o/s balance slow to move

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LosLobos

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I am midway through a ECB1.5% 30-years UB tracker for a EUR150k house (purchase price = current value).

After many recession-era problems* things have stabilised, to the extent that an agent is doing a good job and I need not worry about it. However the monthly repayments circa EUR550 (interest around EUR80per month) really don't seem to be making a dent in the outstanding balance according to the UB app.

It can take many months for the outstanding balance to drop by a EUR1,000 - I would expect a EUR1k drop every 2-3 months. What am I doing wrong? Are UB doing their calcualtions correctly?

*no missed payments or holidays
 
The capital balance after 15 years should be around € 77K and the interest around € 97 (gross, before tax relief)

The interest cost started off around €200 per month

The balance owed will reduce to € 71k over the next 12 months which is 550 x 12 = 6,600 - interest 1,116
 
I'm not with Ulster, but with BoI they debit the interest every three months but credit my payments every month. I think this is an industry standard.

Is this the issue maybe?
 
I have a tracker with UB and the apps shows my outstanding balance dropping on a monthly basis with just 2 transactions a month posting, the interest and the repayment amount.
 
The statement should look like the following each month

Opening balance: 150 000
Interest. 80
Repayment 550
Closing balance. 149 470

The repayment should bring the balance down by €550 each month.

Then the balance will rise by €80 a month if they credit it each month, or else by €240 if they credit it every quarter.

You will find a full guide here

Key Post - A guide to mortgage repayment calculations

As always, comments, corrections and suggestions for layout very welcome - Brendan There have been a few questions on askaboutmoney which have been very difficult to answer without explaining the background to mortgage calculations. For example: Bank of Scotland offer to write off my...
www.askaboutmoney.com
 
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I suspect that you are looking at the arrears balance which is a meaningless figure and probably would not come down as quickly as the actual mortgage balance.
 
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