100 Mortgages

The interest rate of a mortgage is a vital component in the successful negotiation of securing a mortgage. Though the majority of banks and building societies offer similar rates it is vital that the borrower does in-depth research on what is available for the figure they have in mind. Just a 1% difference from one mortgage to another can save the borrower thousands of pounds in repayments.

For example

Bank A offers an interest rate of 6.5% on a mortgage of £200,000 over 40 years. This implies that the borrower will be required to pay £213,000 to the bank throughout the repayment period. However, Bank B offers 7.5% on the same mortgage value and over the same period of time. Meaning that the borrower is required to pay £215,000 to the bank as the interest has increased the total balance by £15,000, £2,000 more than what Bank A proposed.

100 Mortgages: