Cost of Credit

Managing Debt Cost of Credit

The following example, estimates the impact an arrangement may have on the total cost of credit on your mortgage.

This illustration is based on a mortgage of £275,000 over a 30 year term. The overall cost for comparison is 4.00% APR. The total cost of credit** for this mortgage is £197,641.14. This example shows a mortgage that was drawn down two years prior to an arrangement being put in place.

Arrangement 

 

 

Term

                                    

Monthly payment prior to the deal *Monthly repayment during the period of the deal Monthly payment when deal ends As a result of this temporary arrangement, the total cost of the credit may increase by 
Interest only 12 months              £1,312.89 £883.72 £1,341.70 £3,696.61
Payment reduced by £340 6 months £1,312.89 £972.89 £1,323.18 £1,344.65
Moratorium 6 months £1,312.89 £0.00 £1,352.62 £5,192.25
Term extension 5 years £1,312.89 £1,206.81 £1,206.81 £36,872.90

* Flexible payment options may appear cheaper in the short term but could be more expensive over the life of the mortgage and are subject to approval.

 

** The total cost of credit is the total amount repayable less the amount of the original mortgage value. For illustration purposes it is calculated using a variable interest rate and is therefore subject to change. Rates and repayments are correct as of the 16th March 2011.

 

If debt is becoming a problem call us today on 0345 3016910 in relation to mortgage debt or 0345 602 3112 for non mortgage debt. Alternatively, you can arrange an appointment at your local branch.

 

 

YOUR HOME MAY BE REPOSSESED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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