Daily Interest Mortgages

A daily interest mortgage is a type of mortgage where the interest on the outstanding balance is calculated on a daily basis. When a payment is made it reduces the daily interest mortgage balance from the day after. This means that the balance outstanding is reduced almost immediately and the interest for the following payment will be calculated on the reduced amount owed.

Should you be able to make overpayments on your mortgage this will also reduce the balance of the outstanding daily interest mortgage almost immediately making a significant difference to the amount of interest you will pay overall on the mortgage. Overpayments may also enable you to pay your mortgage off early, therefore leaving you mortgage free with the extra cash to spend as you please!