calculation of interest

[Maggoty]

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

[twix123]

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

[bednobs]

if the rate is fixed

[Maggoty]

brilliant - thank you both of you.

xx

[R1Geezer]

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