Daily interest rate calculation

clarewclarew Forumite
500 Posts
Part of the Furniture 100 Posts
Forumite
Long time lurker back....following house move and loss of 1 income, am trying to restart our mortgage overpayments again.

I've lost the link to the simple way to calculate the daily interest rate (as that scared me into trying to pay bits off here and there!).

Mgage is 123,000 now at rate of 2.5%

(I remember dividing it by 365.25 to allow for leap years) but have confused myself in trying to calculate it.....can anyone point me in layman language-maths isn't my strong point-in what the calculation is please.)

Ps Mgage started at 185,000 so am pleased we are down to 123,000!! Can't wait til it's below 100,000 :-)
Original mortgage 185k. 2003
Current mortgage. 65k Jan 2020
OP £321/month-Aiming to finish August 2025 instead of October 2028 (whilst keeping the 4 dependents fed,watered,clothed,sheltered and paying for school/activities paraphernalia):rotfl:

Replies

  • rockabellerockabelle Forumite
    80 Posts
    Hi Clarew

    Simple calculation is (mortgage * interest rate/100)/365 for your daily rate, so it's currently £8.42. It obviously changes (slightly) every month as you repay the capital (so when you get to 120,000, it'll drop down to £8.22 a day).

    (It's possible this isn't 100% accurate, depending on whether you pay interest on your interest throughout the month, but it'll only make fractions of pennies worth of difference, so probably not worth calculating!)

    Hope this helps
    Belle
    MFiT T3 no 115, MFW 2015 no 65
    April 2011 balance when mtg started 300,000
    March 16 2015 balance - 165,972
    MFiT T3 target 190,000 - REACHED!!!!:beer:
  • SuarezSuarez Forumite
    970 Posts
    rockabelle wrote: »

    Simple calculation is (mortgage * interest rate/100)/365 for your daily rate, so it's currently £8.42.
    Belle

    You don't need to divide by 100.

    (mortgage * interest rate)/365
  • Suarez wrote: »
    You don't need to divide by 100.

    (mortgage * interest rate)/365


    Totally true - I was just thinking that the OP might just put in the 2.5 rather than 0.025, and was trying to be helpful
    MFiT T3 no 115, MFW 2015 no 65
    April 2011 balance when mtg started 300,000
    March 16 2015 balance - 165,972
    MFiT T3 target 190,000 - REACHED!!!!:beer:
  • edited 23 May 2014 at 12:47PM
    clarewclarew Forumite
    500 Posts
    Part of the Furniture 100 Posts
    Forumite
    edited 23 May 2014 at 12:47PM
    Thank you both, and yes....simple is good for me as too many digits confuse me!
    I remember when my interest was £20 a day so lovely to see how the impact of overpaying (plus regular Mgage payment and the Low base rate) has brought it down....let's hope the b of e don't hike the interest rates up too fast in the next year of so.
    Original mortgage 185k. 2003
    Current mortgage. 65k Jan 2020
    OP £321/month-Aiming to finish August 2025 instead of October 2028 (whilst keeping the 4 dependents fed,watered,clothed,sheltered and paying for school/activities paraphernalia):rotfl:
This discussion has been closed.
Latest MSE News and Guides

Boost your Nectar points

Get up to £25 this Saturday

MSE News

Preparing for summer

What MoneySaving things can you do now to get ready?

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals