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abr
I'm probably missing something simple so please feel free to hurl abuse.
I am on a 5yr fixed mortgage. Monthly payments from me to Halifax are all the same. I am overpaying by £500 a month currently.
Therefore, seeing as the interest rate is fixed and I am overpaying, I would expect the actual value of interest charged each month in pounds and pence to go down seeing as I am only eroding the outstanding loan. Especially since I am overpaying.
However, the past few months' interest charges since I started overpaying were as follows;
Nov 17 - £527.58
Dec17 - £542.44
Jan 18 - £540.37
Feb 18 - £485.64
Mar 18 - £535.93
What am I missing? I naively assumed these values would only go down seeing as interest rate is fixed and payments outweigh the amount of interest.