Pay intrest yearly or daily

lily288

I have write a similar msg on DFW board by mistake but not been moved so will try again.
My intrest is paid yearly and it says that if making OP's that the balance will go down but intrest won't go down till the following year which will be dec 2011.
I have rang and they say I can change to a daily intrest, would this be better, would I save a lot more or just keep it the same?
I'm with C& G and have £104,000 outstanding.

originalmiscellany

Yes if it's calculated daily, it'll make a huge difference to you.
E.g. if you have a 100k mortgage and you can only get it recalculated at the end of the year, you can overpay but not feel any benefit,
whereas if you say overpay 90k on hte next day, you only owe 10k and your interest payments on 10k will be naturally a lot less.

You should get it to a daily interest calculation and start overpaying with some passion! It'll save you thousands long term.

CLAPTON

well
I'ld suggest you check the detailed T&Cs of the two situations
as on a like for like basis, daily interest is a no-brainer compared to working out the interest yearly, it seems strange that you can simply switch

lily288

Thanks for the replys,
I hope it does go through ok, she had to ask someone because she had never been asked that before and said that something will be sent in the post to sign and send back