User talk:Forton

Welcome!

Hello, Forton, and welcome to Wikipedia! Thank you for your contributions. I hope you like the place and decide to stay. Here are some pages that you might find helpful:

I hope you enjoy editing here and being a Wikipedian! Please sign your messages on discussion pages using four tildes (~~~~); this will automatically insert your username and the date. If you need help, check out Wikipedia:Questions, ask me on my talk page, or ask your question on this page and then place {{helpme}} before the question. Again, welcome! Wizard191 (talk) 14:38, 31 July 2009 (UTC)[reply]

Building society interest

What the Coventry are doing is not unusual, and not unfair either.

It is not rocket science to work out the interest due on an interest only mortgage. For example, if you have a £365,000 mortgage at 5%, the annual interest is £1,825 and the daily interest £5.

If you complete on the 15th of a month with 31 days, you will incur around 16 days of interest for the part month - that's £80.

The reason they say "around 1.5 months' interest in the first month" is that on average people complete in the middle of the month, and hence they will incur 1.5 months' interest to be paid in the first whole month.

The first part month's charge is irrelevant for comparing between lenders - what matters is the interest rate, (and the fees) and everything else will come out in the wash. If mortgages A and B are identical, then the part month's interest will be the same.

Hope that helps.

But a better place for questions like this is www.cashquestions.com, rather than the talk pages of Building Society MarkyMarkD (talk) 21:28, 11 November 2009 (UTC)[reply]

Thank you!

Thank you for your response, MarkMarkyD, it does help, particularly the cashquestions pointer. There are so many websites around this sort of subject, but they almost all seem to be trying to sell you something - which is why I went to wikipedia.

I think your not-rocket-science example is using Simple interest rather than Compound, isn't it? But that might not make a huge difference here.

My concern was that I might get an unpleasant surpise when, too late, I actually got the Completetion letter. I wondered about the algorithm, and I wondered if there might be one or more extra fees I hadn't known about (the booklet on fees has an amazingly long list).

But my son convinced me it really is the case that contract workers in call centres are unable to handle anything outside their training, and OF COURSE software can only provide what's been programmed.

The fact really was that my suspicions were raised by an unpleasant salesman.