Daily interest rate calculation
clarew
Forumite 500 Posts
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 :-)
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:
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:
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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
April 2011 balance when mtg started 300,000
March 16 2015 balance - 165,972
MFiT T3 target 190,000 - REACHED!!!!:beer:
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
April 2011 balance when mtg started 300,000
March 16 2015 balance - 165,972
MFiT T3 target 190,000 - REACHED!!!!:beer:
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.
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: