sketchTheBench
Property investor
I’ve received a 4.00% mortgage quote with a five-year fixed period for a property purchase of around £507,000 in London. The headline rate initially looked competitive, but the arrangement fees and loan-to-value tier make the comparison less straightforward.
For recent UK borrowers, which figure did you find most useful when comparing lenders: APR, interest charged during the five-year fix, or total cash cost over that period including fees? I’m leaning toward the last one, while also comparing monthly affordability on the same loan amount and repayment term.
I’m also looking at early-repayment terms and portability, as a low five-year cost may be less attractive if moving becomes expensive. How would you account for refinancing assumptions and the risk of rates resetting after year five? A practical comparison method would be very helpful.
For recent UK borrowers, which figure did you find most useful when comparing lenders: APR, interest charged during the five-year fix, or total cash cost over that period including fees? I’m leaning toward the last one, while also comparing monthly affordability on the same loan amount and repayment term.
I’m also looking at early-repayment terms and portability, as a low five-year cost may be less attractive if moving becomes expensive. How would you account for refinancing assumptions and the risk of rates resetting after year five? A practical comparison method would be very helpful.