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Actual Rate for Comparison...KFI.. why??
fimonkey
Posts: 1,238 Forumite
Still amassing info re: mortgages and deals etc. When the time comes I'll use a good mortgae advisor but would like to understand it myself too.
Todays question regards the Actual Rates for Comparison which are on mortgage comparison websites etc. This takes into account the APR for the WHOLE term of the mortgage (ie 25yrs), however given that it's now the norm to switch and swop around mortgages, AND also that no-one knows what interest rates will do in the future, then isn't the Actual Rate for Comparison a complete waste of time? (unless of course you have a fixed deal for the whole term of your mortgage and never intend to switch).
In my position, (potential FTb, good deposit and money to pay fees upfront) what should I be looking for in terms of comparing deals for a repayment mortgage, My insitinct tells me to:
a) Look for the lowest arrangement fee's
b) Look for no (or low) early redemption fee's (cos for sure I'd be switching to better deals as and when I could).
c) Monthly payment (obviously based on APR for the period of the fix/cap (on a fixed rate or capped rate, for 2/5 yrs This is the bit I'd take advice on.
Anything else I should consider? Any mortgages match the above?
Cheers all knowledgable ones!
Todays question regards the Actual Rates for Comparison which are on mortgage comparison websites etc. This takes into account the APR for the WHOLE term of the mortgage (ie 25yrs), however given that it's now the norm to switch and swop around mortgages, AND also that no-one knows what interest rates will do in the future, then isn't the Actual Rate for Comparison a complete waste of time? (unless of course you have a fixed deal for the whole term of your mortgage and never intend to switch).
In my position, (potential FTb, good deposit and money to pay fees upfront) what should I be looking for in terms of comparing deals for a repayment mortgage, My insitinct tells me to:
a) Look for the lowest arrangement fee's
b) Look for no (or low) early redemption fee's (cos for sure I'd be switching to better deals as and when I could).
c) Monthly payment (obviously based on APR for the period of the fix/cap (on a fixed rate or capped rate, for 2/5 yrs This is the bit I'd take advice on.
Anything else I should consider? Any mortgages match the above?
Cheers all knowledgable ones!
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