I have written an application to calculate my monthly interest charged on my mortgage. My figures have been out since the start of this year and i only just got around to debugging why.
Looks like my bank is charging daily interest rate of (annual rate/365 days) instead of (annual rate/366 days) because this year is a leap year (2020).
Is this correct? Is this specific to my bank – Newcastle Permanent?
I will contact my bank, but just wondering if anyone has any experience with this?
Sorry, all good.
I dug up my paperwork and it clearly states:
"The daily percentage rate is the annual percentage rate for that day divided by 365, including in a leap year."