The monthly saving is modest, so I do not want to choose the least flexible loan merely because its headline looks better. The purchase is around SAR 1,388,000 in Riyadh, and one quote is 2.61% fixed for 1 year. Once the lender’s fees and the applicable loan-to-value band are included, the advantage is much smaller than the advertisement suggested.
My current plan is to put every offer on the same one-year comparison period: monthly payments, interest and all charges paid during that time. The obvious weakness is that a cheap first year may lead into a less attractive reset rate, so I also need a second calculation showing likely affordability afterward.
What should I ask lenders to state clearly about how the post-fix rate is determined, early repayment charges and any conditions attached to moving the mortgage to another property? I would also like the refinancing assumptions separated from the guaranteed terms so I am not comparing best-case illustrations.
My current plan is to put every offer on the same one-year comparison period: monthly payments, interest and all charges paid during that time. The obvious weakness is that a cheap first year may lead into a less attractive reset rate, so I also need a second calculation showing likely affordability afterward.
What should I ask lenders to state clearly about how the post-fix rate is determined, early repayment charges and any conditions attached to moving the mortgage to another property? I would also like the refinancing assumptions separated from the guaranteed terms so I am not comparing best-case illustrations.