Calculator Interest Mortgage Payment Uk

Q: can anyone email me a spreadsheet that will calculate mortgage repayments based upon interest being charged on a daily basis rather than the old anachronistic annual way most lenders used to use in the UK. Ideally, I would like to be able to enter test figures for the mortgage period, the interest rate & the ammount borrowed. Then see what the repayment amounts are when the interest is calculated daily & how it alters when monthly fixed or variable repayments are made. Alternatively if anyone can point me in the direction of any specific known excel functions that do the job I would be most grateful. Most of the ones I have looked at do not account for daily interest.

A: I've sent a mortgage amortisation schedule that should point you in the right direction. The rate input is Nominal but you can calculate the appropriate Nominal rate that is equivalent

to the rate your BS uses. There are a number of different systems in use by UK lenders. Banks tend to quote annual nominal compounded monthly but charge the equivalent daily effective rate on the running balance. For most purposes it will be sufficient to input Annual Nominal compounded monthly as the daily 'tweak only impacts on the slight difference between dates when payments are actually made. Many Building Societies, however, use a peculiar basis rooted in old limited technology. They calculate a repayment based upon payments annually in arrears and then charge 1/12 of this payment each month. Even more anachronistic is their method of calculating early redemption. .