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Hello
Does anyone know how mortgage interest is calculated on a repayment capital and interest loan. I assumed that each monthly payment included an amount of capital and an interest charge which stopped interest accruing over the year. I find out my monthly mortgage interest did not cover the full interest so, it continued to accrue monthly interest and I believe it was then added to the balance at year end. Seems like a con to me to get more interest out of us??
Im speaking with a journalist about this as the mortgage company tried stitching me up with a final repayment charge of £195 that wasn't included in my mortgage offer.
Thanks
PW
Does anyone know how mortgage interest is calculated on a repayment capital and interest loan. I assumed that each monthly payment included an amount of capital and an interest charge which stopped interest accruing over the year. I find out my monthly mortgage interest did not cover the full interest so, it continued to accrue monthly interest and I believe it was then added to the balance at year end. Seems like a con to me to get more interest out of us??
Im speaking with a journalist about this as the mortgage company tried stitching me up with a final repayment charge of £195 that wasn't included in my mortgage offer.
Thanks
PW
