Every £1 I borrow I will pay back £2.24 - Is that right!?!

TangentMan

I assume that the £ paid back for every £ borrowed is from the KFIs for these products that the lenders have given you?

If so, they KFI should illustrate how that is arrived at (you should be able to see the number of payments at the fixed rate and the amount at any SVR type rate to the term of the loan) and you can check the figures for yourself. Its enlightening to see how much is paid in interest but the figure you quote is not extra-ordinary.

If you haven't been given a KFI, don't make a decision without seeing one.

gmailwill

TangentMan wrote:

I assume that the £ paid back for every £ borrowed is from the KFIs for these products that the lenders have given you?

Apologies for my ignorance but what's a KF1?

Thanks for the reply.

Will
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herbiesjp

KFI = Key Features Illustration

The quote you should have been given

gmailwill

Yes, it's from the KFI.

I take your point (after other replies from this board and taking a little advice elsewhere) that the £2.24 is fairly average for the figures I quoted in my earlier post (93.5k cost of house, 40k deposit, 30 years loan of 53.5k fixed at 4.94% until 3 Jun 2008 then up to 6.5% after that).

So original question answered, thanks to all contributors to this thread - it's been useful.

Will