%OP%TNT
%OP%JUY
%OP%HM0
%OP%FM0
%OP%BM0
%OP%LM3
%CO:A,12,72% MONTHLY MORTGAGE REPAYMENTS

%JR%        The formula for calculating mortgage repayments is quite 
%JL%complicated. Because there are two types of mortgage and two types of 
%JR%sources from which to obtain them it is a very tedious business to make 
meaningful comparisons without a computor.

%JL%        Repayments of money borrowed for the purpose of buying a house 
%JR%attract tax relief (here we use the standard current rate of 25%PC%) up to 
%JL%a threshold (currently £30,000). Repayments for any amount in excess of 
this threshold must be paid gross.

%JR%        The program assumes that the above two figures will be fixed 
%JL%until next Budget Day. If they should change then you must amend the 
figures in line 80 of the program. It is covered by a REM statement.

%JR%        REPAYMENT mortgages are provided by Banks as well as Building 
%JL%Societies.  B.Socs add the following year's interest to the amount of 
%JR%loan outstanding at each anniversary of the mortgage (your first year's 
%JL%interest is added before you even make your first payment !).  Banks 
%JR%treat your loan like an overdraft; they add the interest on the loan at 
%JL%the end of each month. This would make the Banks cheaper except that 
they have a higher interest rate than the Societies - of course!

%JR%        ENDOWMENT mortgages are common to banks and B.Scs.  You only 
%JL%pay the interest charge on the loan but you have to have an endowment 
%JR%insurance policy to cover the capital repayment at the end of the term 
%JL%and premiums for this are added to the interest charges.  This program 
does not attempt to calculate these premiums, only the loan repayments.

%JL%        Other charges like survey fees, etc. vary from lender to lender 
%JR%and they cannot be covered here. What the program does, very accurately 
%JL%is to calculate the monthly repayment for both types of mortgage from 
%JR%the two types of lender.  You will find that quotes from lenders will 
%JL%sometimes agree with those calculated in the program, to the very penny 
%JR%but not always. If they have added some charges to the loan then their 
%JL%figures will be higher and should be queried - a few pence "per £1000" 
%JR%may not seem very much but on any loan it could mean a few pounds every 
%JL%month. In any case you can only make comparisons if you know the 
'basic' cost.
 
        Hope you like it, and hope it is useful to you,  Jack Lawrie.

%CO:B,12,60%%CO:C,12,48%%CO:D,12,36%%CO:E,12,24%%CO:F,12,12%