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Monthly interest - is it a new thing?
pootleflump
Posts: 100 Forumite
I'm approaching the end of a 2 year discount mortgage with alliance & leicester and looking to remortgage, L&C got quotes for me but it seems I'm going to be better off staying with A&L and just switching to a different deal (2 year fixed). However, they told me that interest will be charged monthly on this mortgage. I've only ever heard of it being charged daily or annually- is this a new thing? As far as I'm aware, the daily interest is the better option, so is the monthly interest just a way of getting more money out of you?
0
Comments
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Not new as such. There are some subtle differences in interest calculations in the "real world". Remember you might have a daily interest calculation, but if the balance used is only revised monthly (and typically you pay your mortgage monthly) then the difference is not as marked as you might think.
But, as a general rule (which means you can find some circumstances where this is not the case) daily is better.0
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