From: wallport2001@yahoo.co.uk (The Wallport)
Newsgroups: uk.finance
Subject: Re: BBC Mortage Calculator error?
Date: 5 Apr 2004 10:47:54 -0700

Thanks for the explanation - makes mathematical sense but as for the
lenders and the BBC's policy...

So is the BBC using a calculation method the same as or different to
the majority of lenders and where do either state what method they are
using?

TIA

G.

Ronald Raygun  wrote in message news:...
> The Wallport wrote:
> 
> > Just been trying to make excel calculate mortgage repayments and tried
> > to check them against the BBC mortgage calculator on their website.
> > Just can't get the numbers to agree. Now I'd normally just give in and
> > say they must know something I don't about the calculation method
> > but...
> > 
> > I got some quotes from mortgage provider websites that matched my
> > numbers (and some others which matched their numbers - never at the
> > same % rate though).
> > 
> > The formula used is (pinched this from another post):
> > 
> > =-PMT(%/12,*12,,0,0)
> > 
> > e.g.
> > 
> > 50,000 mortgage over 10 years at 5.2%
> > 
> > BBC   = £544.85
> > Excel = £535.23
> > 
> > What is going on - anyone understand?
> 
> Yes.  One of them is calculating payments based on 120 months at 0.43333%
> per month, the other is calculating payments based on 10 years at 5.2% per
> year, and dividing the answer by 12 (actually I make it £544.86).
> 
> I don't speak spreadsheets, they're horrible nasty things, so I
> don't understand this PMT stuff.
> 
> But I think, based on what you've written above, you'll find you get
> the same answer if you omit the "*12*, and move the "/12" to the outside.
> 
> What they "know" that you don't is that some lenders do in fact work
> it out by the BBC method, but the more reputable ones do it right.