Alliance & Leicester Interest Calc

agile83

Hi guys,

Had my mortgage account statement for 01/01/2010 to 31/12/2010 and it says

01/01/2010 - Opening Balance £98553

(Various Payments)

31/12/2010 - Interest Added 4530.10

Assuming the interest gets added to my balance at the end of each year, is there any point in me overpaying each month or should i wait till each January when i can overpay a lump sum without a penalty??

Im just trying to work out whether the interest going on at the end of the year is good or bad?

Anyone else on an Alliance and Leicester product who has the interest added at the end? I have queried about how overpayments get calculated before with customer services but they always say it gets calculated at the end of each month!!

wantabetterlife

As far as i know all mortgage companies show the interest as the total on the mortgage statement, that doesnt mean that the actual interest is not charged on a daily basis. I have to mortgages one with halifax and one with nationwide and they both calculate the interest daily, but on the mortgage statement they just show the total for the year...i would phone your mortgage provider to see what way they charge their interest. Hope that helps.