Setting up a lifetime mortgage

bob's Avatar

bob

09 May, 2022 07:28 PM

How do I set up a lifetime mortgage account? I am borrowing an amount against my property & dont have to pay off the interest if I dont want to. However I want the option either way. The interest accrues daily, and is compounded annually. If I create a loan account, i have to allocate the interest to a category which create a contra amount. Please advise.

  1. 1 Posted by bob on 14 May, 2022 10:31 AM

    bob's Avatar

    can any staff offer me a solution?

  2. 2 Posted by dwg on 14 May, 2022 10:42 AM

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    I'm a fellow user.

    The Loan account type in Moneydance is geared towards the usual P & I type of loans.

    I cannot envisages a way of having an automated loan that would meet your needs. I think you would have to use a liability account and post transactions.

  3. 3 Posted by Stuart Beesley ... on 14 May, 2022 11:00 AM

    Stuart Beesley (Mr Toolbox)'s Avatar

    I use a liability account and automatic transaction reminders (exactly as dwg says).

  4. 4 Posted by bob on 16 May, 2022 09:17 AM

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    Thank you for your advice, both. However, I may seem dumb but when I post the interest(which is accruing & unpaid), what account do i set it against so as to avoid a contra?

  5. 5 Posted by dwg on 16 May, 2022 10:04 AM

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    I'm a fellow user.

    The interest will increase the debt, you could create an accrued interest category and assign this as the category for the transaction.

  6. 6 Posted by bob on 18 May, 2022 10:18 AM

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    Thanks dwg, sounds like an answer!

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