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How
the figures were calculated
The
Complete guide to Homebuying Top Lenders of the Year awards for 2003 are based
on performance statistics provided by Network Data Ltd. They show
the interest charged to an existing mortgage borrower over the last
two, five and ten years. This reflects both the interest rate charged
and the dates at which they were applied to the existing borrowers'
account.
The calculations are based on an interest-only mortgage where the
original capital loan remains outstanding and neither increases
or decreases throughout the periods used.
These were:
• Ten years - from 1 January 1993 to 31 December
2002
• Five years - from 1 January 1998 to 31
December 2002
• Two years - from 1 January 2001 to 31 December
2002
The performance figures have been calculated by computer, based
on the following rules:
• Gross interest has been calculated on a daily basis
• The rates used are for existing borrowers' accounts
• A 74 per cent LTV mortgage of £80,000 has been used
for all three time periods. Using a different capital loan amount
would alter all lenders' performance figures pro rata, so therefore
would not alter the ranking. An £80,000 mortgage was chosen
because it represents a typical loan size.
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