Why do mortgage calculators give different results?!

sosos

I was on the phone to my bank as my current deal is ending.

I have £229,045 outstanding.
19 years left.
2.99% offered.

Bank tells me that my monthly repayment would be £1313 per month.

Later on during a bored moment I went online and googled mortgage calculators.

MSE, BBC, MoneySupermarket, and two others all gave different results! The smallest difference was £4 and the biggest was about £20.

Why the discrepancies? I always thought it was a basic maths formula, but apparently not.

gedankenesoni

Don't quote me on this, but I think mortgage calculators are just number crunchers, which take into account interest rates. I guess different calculators use different rates? and that's why this is an issue.

Wh05apk

Presumably the "mortgage calculators" were not taking into account charges etc possiby daily/annual charging of interest.

They should be used as an estimate at best, the true figure will be the lenders figure, as that would be a compliant figure, as opposed to the calculators which have no responsibility for their accuracy.

getmore4less

There will be slight difference depending on the exact algorithm used to do the amotization.

payment in advance or arrears
computation of the monthy/daily rates do vary.

i use

http://www.whatsthecost.com/mortgage.aspx

£1318.03
so close to
£1313.

a single overpayment(£1k) would make the amount
£1312.27

Which would mimic be the difference between a payment in advance or arrears

£20 is lot equivilent to a rate difference of +-0.18%

ACG

All the calculations are estimates. Even the ones on the lenders websites have disclaimers next to them.

It all depends on whether the interest is charged daily or monthly, what day you pay the DD on and what day the mortgage completes on probably a few other things also.

Theyre there to give you a rough guide and are generally accurate enough to let people know whether or not they can afford it.