Daily vs Yearly Interest

NatAes

I've got a mortgage with Barclays/Woolwich, which charges yearly interest. They've told me that if I want to switch from yearly to daily interest, then I'll have to remortgage. I know there's a lot to consider before I go down this route, but for starters I'd like to understand what the potential saving would be if I did make this switch.

Are there any mortgage calculators that would allow me to calculate the saving from switching from yearly to daily interest? The ones I've come across don't seem to have this functionality.

getmore4less

You need to work out the equivalent rates based on the payments.

No calculator can do it without knowing the precise terms of both methods, the rates and payment.

Nearly all calculators use standard equal period amortization which does not get daily interest exact.

Zandy_23

I don't think there is a calculator that would give the functions of daily interests.

getmore4less

What rate is the current mortgage amount LTV payment term?

It may be annual daily is not going to be the big saver.

If you have one of Barclays older super rate trackers they may be keen to have you change.