Mortgage payment doesn't match the calculator??

Leon_W

Yep, that'll be why. Cheers.

HelpWhereIcan

Leon_W wrote:

But there are still a few lenders who do it monthly, First National, Preferred, I Group, Kent Reliance, Kensington, Platform etc and as you say, it is important to find out on what basis the interest is calculated as it can add thousands over the lifetime of a mortgage.

That said, I don't really have a problem with monthly as the difference is pretty small. Annual is the problem.

Agreed, and well spotted leon. Just to add my tuppence worth, I would also add Portman, Bristol & West (on some deals) and Nottingham as other 'larger' lenders that still have a significant part of their range on annual interest.

IMHO, this thread shows why some of the 'direct only' deals (a la Portman fixes) may not be as attractive as they look.

STAR_BUCK

Hiya

My mortgage is with Portman. I didn't realise having the interest calculated annually as opposed to daily made such a difference to the monthly payments!

thanks all for clearing that up for me : )

Leon_W

I'll get me coat !!

All good fun and thanks for coming back to us on this Starbuck.

payless

I assume the monthly figures match the illsutration that was provided at application stage ?

One glimmer of hope , whilst the payment is higher on annual, some of this is reflected in the greater cpaital erosion

fimonkey

erm.... for a very basic novice (i.e. ME ;-) ) does that mean it's best to go with a mortgage that calculated daily interest as opposed to annual (or have I got it mixed up)?

Is there ever a choice? (what's the deal with Nationwide)?

Many thanks

MarkyMarkD

If your mortgage is interest only it makes no difference at all, unless you overpay.

If your interest is repayment, or interest only but you overpay by regular small amounts, annual will save you some money.

On the example given, the difference is equivalent to 0.11% on the rate - making it 5.00%. So, unless you can get a monthly rest mortgage with a rate under 5.00%, it's still better to have the 4.89% rate applied annually.

Benny21

Mortgage calculators rarely reveal their behind-the-scenes assumptions. Few mortgage calculators are accompanied by any explanation of how they work or what assumptions are used. Does the monthly payment include mortgage insurance, if required? Does it include an impound account for property taxes and casualty insurance? Is the equation adjusted to reflect a higher interest rate on a jumbo loan or a non-owner-occupied property? The more questions you're asked before you click "calculate," the more reliable the outcome is likely to be, but that's assuming the information you enter is correct.

Leon_W

Benny

Please could you possibly remove the links from your signature as it can be construed as "touting" ?

There is a mortgage brokers code of conduct available at the top of the board. Even if you're not a broker the links go against the spirit of the site.

Cheers

payless

MarkyMarkD wrote:

If your interest is repayment, or interest only but you overpay by regular small amounts, annual will save you some money.

.

Think you mean the other way around- given same quoted rate- daily (or monthly) will be cheaper than annual

On the example given, the difference is equivalent to 0.11% on the rate - making it 5.00%. So, unless you can get a monthly rest mortgage with a rate under 5.00%, it's still better to have the 4.89% rate applied annually

Yes usually around 0.1%, although the annual difference is not that much once you take capital initial erosion in to play- and if you plan to take a new deal eslewhere ( ie whats owing after the initial 2yrs on the fixed)