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calculation of interest

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Maggoty | 07:03 Wed 29th Sep 2010 | Business & Finance
4 Answers
Hi there

I am looking at various loan options

I am looking to increase my mortgage by £36K (at 5.3%) but to pay back the 36K plus the interest on the 36K in 4 years time when a policy matures.

My question is (as I have no idea whether mortgage interest is calculated monthly or yearly etc) how much will I have to paid in interest over those 4 years (interest is fixed at 5.3%).

Thank you

x
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If the APR is 5.3%, with no repayments and therefore interest being rolled up into the loan, the final repayment would be £44,260.47, making the total interest repayable £8,260.47
13:44 Wed 29th Sep 2010
If the APR is 5.3%, with no repayments and therefore interest being rolled up into the loan, the final repayment would be £44,260.47, making the total interest repayable £8,260.47
if the rate is fixed
Question Author
brilliant - thank you both of you.

xx
Twix is correct if the interest is charged/added annually. The interest will probably be calculated/added monthly which will make it £8481

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