Interest rate information

Your interest rate information will be on your mortgage offer and in your latest annual statement.

If you are unsure about your product or interest rate please contact the lending call centre on 0345 300 2627. Our lines are open 8am to 8pm Monday to Friday and 9am to 1pm Saturday.

Our contact details for any queries are as follows:

Birmingham Midshires Mortgage Servicing
PO Box 833
LEEDS
LS1 9PU

Phone:

0345 300 2627

How is my mortgage interest calculated?

The interest on your mortgage is calculated on a daily basis.

Daily interest

Daily interest is calculated by charging interest on the amount of your outstanding account, until you've paid it off, on a daily basis. We start charging interest:

• on any money we lend you from the day we lend it to you;
• on interest from the day after we add it to your mortgage;
• on any charge and cost we add to your mortgage loan from the day we do so.

Any payment that you make will reduce the balance and therefore the amount of interest you are charged from the day that we receive it. We'll add the interest for each month to what you owe at the end of the last day of that month. We start charging interest on the added interest from the first day of the next month.

How we work out interest

For each month, we look at what you owe at the very start of the month. Then we look at anything we need to add to what you owe, such as a charge, or anything you pay off, say through a monthly payment, during that month. We'll calculate your interest for the month as follows:

• (what you owe at start of month) x (yearly interest rate) x (days in the month)
  PLUS
• (any added amount) x (yearly interest rate) x (remaining days in month, including the day of addition)
  MINUS
• (any payment) x (yearly interest rate) x (remaining days in month, including the day of your payment)

We divide the total figure by 365 (366 in a leap year). We do our calculation to four decimal places at each step. We round up the result to the nearest penny to give you your interest charge for the month.

For example:

Someone owes £100,000 on 1st June, and on 16th June they make a payment of £20,000. Their yearly interest rate is 6%. On that basis, we work out their interest for June as follows.

£100,000 x 6% x 30 (being the number of days in June) = £180,000.0000.
£20,000 x 6% x 15 (being the number of days from 16th to 30th June) = £18,000.0000.
£180,000.0000 - £18,000.0000 = £162,000.0000
£162,000.0000 / 365 = £443.8356.

Total interest charge for June = £443.84.

Certificate of interest requests

For tax purposes some customers require official proof of the amount of interest charged to their account during a tax year. In these instances we can issue a certificate of interest paid, which will detail this information.

If you prefer we can arrange to automatically send a certificate to you every year.

To request a certificate please contact the lending call centre on 0345 300 2627. Our lines are open 8am to 8pm Monday to Friday and 9am to 1pm Saturday.