The 4.17% rate fixed for 10 years is the condition driving my choice, but it does not tell me which mortgage is cheapest overall. This is for a Berlin purchase of roughly €621,000, and differences in fees and loan-to-value bands have narrowed the gap between the offers.
I had assumed the lowest rate would win. A loan with a slightly higher rate could still cost less if its arrangement charges are lower or it allows useful repayments without penalty. Conversely, a cheap fixed period may leave a difficult balance to refinance after year ten.
For a like-for-like comparison, would you set out the effective annual rate, payments and interest during the fixed term, every upfront fee, and the balance remaining at expiry? I also plan to stress-test the later payment at higher refinancing rates. Are portability and early-repayment clauses worth pricing separately, or should they carry little weight unless a move or early sale is likely?
I had assumed the lowest rate would win. A loan with a slightly higher rate could still cost less if its arrangement charges are lower or it allows useful repayments without penalty. Conversely, a cheap fixed period may leave a difficult balance to refinance after year ten.
For a like-for-like comparison, would you set out the effective annual rate, payments and interest during the fixed term, every upfront fee, and the balance remaining at expiry? I also plan to stress-test the later payment at higher refinancing rates. Are portability and early-repayment clauses worth pricing separately, or should they carry little weight unless a move or early sale is likely?