Mortgage rates question

edited 30 November -1 at 1:00AM in Mortgages & Endowments
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ccbrowningccbrowning Forumite
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edited 30 November -1 at 1:00AM in Mortgages & Endowments
Sorry for the silly question.

But, can someone explain the following on a 25 year mortgage? It has the 'Initial Rate', the SMR, and the 'overall cost'. There are 3 different % for these. The 1st two make sense on their own, but what is overall cost? Just trying to figure out 25 year fees, etc. or what numbers to put into an amortization spreadsheet.

Thanks so much.,

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  • ACGACG Forumite
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    The overall cost is a waste of time.

    It takes into account the initial rate, the SMR rate and fees - but its based on a few presumptions so its pointless really.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ccbrowningccbrowning Forumite
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    Thanks - so it's just some weird approximation of the initial rate and SMR (for the 20 after that) and fees?
  • ACGACG Forumite
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    The idea is that anyone can compare any mortgage using the overall rate - but the reality is that people swap and change every now and again and the SVR rates go up and down, so its pointless.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ccbrowningccbrowning Forumite
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    Ahh, OK. I'll just go off the initial 5 year fixed rate then, especially since I will be overpaying to the maximum and should be able to remortgage at a better LTV in the future.
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