From: "David Day" 
Newsgroups: uk.finance
Subject: Re: Mortgage spreadsheet
Date: Mon, 12 Feb 2007 20:39:00 -0000


"John Boyle"  wrote in message 
news:dOtmQ2CBcM0FFwMW@johnboyle1.demon.co.uk...
> In message <45d08c56$0$8714$ed2619ec@ptn-nntp-reader02.plus.net>, David 
> Day  writes
>>Hi,
>>
>>Ive read a fair bit on here about apr's etc on savings. Ive done the same
>>formula for my mortgage but taking away payments. The figures I get, dont
>>match the figures given by my mortgage company. Could someone please help 
>>me
>>a little.
>>
>>I have a fixed mortgage for 3 years at 5.99% then it goes up to 6.59%
>>
>>=(1+5.99%)^(E4/365)*F3-(C4+D4)    as given by GSV earlier
>>
>>where I have:
>>E4 is number of days in month
>>F3 is initial loan amount
>>C4 is monthly repayment
>>D4 is an overpayment amount (im hoping to make overpayments soon, hence 
>>this
>>spreadsheet)
>>
>>this formula is in box F4. and is copied down for the full 360 months.
>>
>>I get a difference of 11K at the end of the mortgage period. Can anyone
>>throw any light my mistake(s).
>
> The interest doesnt compound daily as GSV's formula implies. Most accrue 
> daily and compound annually but there are a number of variations. Have a 
> look at your last mortgage statement and see if they apply interest 
> monthly or annually.
> -- 
> John Boyle

Good point! Interest was added on 6-monthly. So now how do i add it on? 
thats really confused me. All I have on my statement is the inital costs, 
fees etc, interest from mar-oct (i took the mortgage out on may 5th) direct 
debits every month then total and closing balance.