Interest charge per day?

Pulse

I see a lot of people referencing this, but can find not much on Google. How do I calculate mine to inspire me to reduce my mortgage further?

Froggy-G

Pulse wrote: »

I see a lot of people referencing this, but can find not much on Google. How do I calculate mine to inspire me to reduce my mortgage further?

Hi Pulse :j

Below is a way to calculate it (Thanks Wantabetterlife)
To work out your daily interest take the outstanding amount of your mortgage, say £100.000 and divide this by 100 (to get one percent) and then multiply this figure by your interest rate, say 4.99. This gives you the interest you pay for a full year...to get the amount per day simply divide by 365 (days in year)

Below is an example:

100,000 / 100 = 1000

1000 x 4.99 = £4999 ( yearly interest)

4999 / 365 = £13.69 per day

Hope that helps

Froggy

originalmiscellany

pleased I've just done that.
It alerts me to the fact that I'm under £2 a day on interest - which considering when I started, it was £16 a day shows how we've come on a long way. Also, when I consider how long it takes me each day to earn the amount, say £16 just to keep the mortgage level as it is, I'm pleased we're doing our bit to clear the mortgage.
Thanks Froggy.

Peelerfart

Am sure there was a huge thread on this last year !

https://forums.moneysavingexpert.com/discussion/997957

and is if by magic !

Pulse

Thanks Froggy!

lincoln-potter

Not looked at it daily before.

Started on £14.10 in December and is now £13.24 :eek: thats not a nice way to look at it

pippa80

Started on £20.56 :eek:

Now £19.14

It's a lot! But quite a quick reduction for not yet 6 months.