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Initial Rate
baggies1
Posts: 36 Forumite
ok this may be a stupid question but when i see a mortgage chart for comparison it says something like this:
3 year fixed
Initial rate 4.15%
Whichis fixed until 31/05/2012
Then theBank of
EnglandBase Rate
+ 1.99%
(variable) 2.49%
The overall cost
for comparison is 3.0% APR
am i paying 3% for the first 3 years followed by 4.15percent?
if so the term "intial rate " confuses me as it would seem to suggest thats what i'm paying to start with?
3 year fixed
Initial rate 4.15%
Whichis fixed until 31/05/2012
Then theBank of
EnglandBase Rate
+ 1.99%
(variable) 2.49%
The overall cost
for comparison is 3.0% APR
am i paying 3% for the first 3 years followed by 4.15percent?
if so the term "intial rate " confuses me as it would seem to suggest thats what i'm paying to start with?
0
Comments
-
You'd be paying 4.15% for 3 years and then going onto the SVR which is presently 2.49% but will probably be higher in 3 years time.0
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