Ok ta. I was looking at mortgages of £245000 which I guess puts the interest rate of 5.8% at £1.2k per month.

The interest in your first month would be about £1200 and would fall over time but AFAIK mortgage lenders tend to work out an average fixed monthly repayment that covers the compounded interest over the whole term.

I recently remortgaged and set up my own calculator with monthy payments and interest added daily. If I put your numbers into it I get a fixed monthly repayment of

**£1550** for £245,000 over 25 years at 5.8%. The total interest paid would be

**£220,162**.

There is a reasonably easy formula to calculate monthly repayments which most of the online calculators seem to use:

Monthly payment = PV × (r(1+r)^{n}) ÷ ((1+r)^{n} -1)*where*PV is the present value of the loan (£245,000)

r is the monthly interest rate as decimal (0.058/12)

n is the length of the mortage in months (12 x 25 = 300)

This assumes interest and payments are both added monthly but it comes up with a very similar result to my daily interest calculation of

**£1548** per month with total interest of

**£219,617**.