How much interest do you pay on your mortgage per day?

Robert_Sterling_3

tsharp wrote: »

How do you work it out?

Is it your mortgage APR devided by 365 days, then add that to your mortgage remainder?

If so, mine is £11ish.

For a very rough answer you multiply your outstanding balance by the interest rate being charged (Not by the APR unless that happens to be equal to the interest rate being charged which is highly unlikely) and then divide by 365.

e.g. Balance 150,000
interest rate 5%
interest 7500 per annum £7500
divided by 365 about £25 per day.

shop-to-drop

Around £13.50

Robert_Sterling_3

biscit wrote: »

Can be.
Could be ((12x your monthly payment) - Balance at start of year + Balance at end of year)/365
.

That would do the trick.

sloughflint

tsharp wrote: »

I've started overpaying our mortgage with Nationwide. I asked for the term to be reduced, will I see this on the online statement, ie does the agreed redemption date recalculate with each payment, or not?

Does anyone have any experience of this?

I am guessing you have chosen to overpay by a specific amount each month? Even if you don't see what the redemption date is, you should be able to obtain it quite easily over the phone I'd have thought.
(edit: have just noticed a later reply to your post)

The way it works is like this:
Each month, your payments will pay off the interest accrued since your last payment date and the rest reduces your capital.( method of calculation to come)
Whatever you overpay will reduce your capital balance further and therefore reduce your term in the long run.

In answer to your question on the first page:

tsharp wrote: »

How do you work it out?

Is it your mortgage APR devided by 365 days, then add that to your mortgage remainder?

If so, mine is £11ish.

The monthly amount will vary from one month to the next. If you know what the capital balance after your last payment is,the interest accrued to your next payment date will be:

Balance x interest rate/365 x number of days to next payment date.

Once your payment (including overpayment) is made, your capital balance will reduce by [ payment total- accrued interest] and that new total is used to calculate the following month's interest.

determined1_2

sloughflint has explained fully, but post #2 here might help as well

http://forums.moneysavingexpert.com/showthread.html?t=1581903&highlight=

Redbedhead

Redbedhead wrote: »

My daily interest today was £16.59 which has decreased from £27.27 on the 1st January this year. While I would like to take credit for that, the majority of the decrease is due to the reducing interest rates as 2/3 of the mortgage is on a tracker.

Well, it was:
£27.27 at 1/1/08
£16.59 at 16/12/08
and now at 8/4/09 it is £4.00 per day!

We have a rate of 0.001% on our largest mortgage (0.66% under base!) so are effectively paying nothing on that and have Nationwide SVR on the rest at 2.5%.

blakea8k

mine is down to £8.96

Numenor

Mine accrues a touch over £10 a day. It's painful to look at it more than once a month. Thank god for overpaying.

Gorgeous_George

Mine is £2.38.



GG

mark55man

my interest repayment is £25 per day (ouch), and my capital repayment also £25

after remortgage and funding an extension it will be £28 in interest. So £3 a day for a new kitchen, and two new rooms seems like a bargain