Independent Mortgage Brokers
Interest Calculations...
Annual Interest - This is when a lender will calculate how much interest you must pay on your mortgage once a year. This can sometimes not be very beneficial if you wanted to pay a lump sum off your mortgage, in some cases you may have already paid a full years worth of interest on your mortgage.
But you will not see any benefit from paying the extra off until the next time the lender calculates your interest, which could be the following year.
Daily/Monthly - In this case the lender will calculate the interest owed on your mortgage everyday, or once a month. This is much more beneficial to you as potentially, every time you make a payment off your mortgage, you will stop paying the interest on it from the next day.
Therefore the overall amount of interest payable, over the whole term of the mortgage, will be less than on an annually calculated mortgage, providing everything else was equal.
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgage advice you can choose how we are paid, pay a fee of usually £500, or we can accept commission from the lender.
The FSA does not regulate legal advice and some forms of mortgage.
The overall cost for comparison is 9% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
