| 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.
Details
of our fees can be found here.
The FSA does not regulate Commercial
Mortgages or some forms of Buy to Let Mortgages.
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