Remortgage Advice - Actual Cost over X years

Thomo2710

Hello,

Im doing some homework regarding re-mortgaging my house for the very first time. Im trying to look up as much I can and read/learn as much as possible but im a little confused on the "Actual cost over X years" meaning

Exisiting first ever mortgage deal:

137,700 borrowed at 5.99% over 3 years with Santander.
Monthly repayemnts £824.70


My Property:

Its current value should allow me to easily be in 80 LTV bracket, borderline 75% LTV.


Deals looking at:

Cov BS - 132,500 borrowed at 3.69% (80 LTV) Fixed until 30.6.18 over 27 years
Monthly repayments 647.99
Fees 499 (will be paid up front)
Actual 5 year cost £38,200.40

Notts BS - 132,500 borrowed at 3.44% (80 LTV) Fixed until 31.5.18 over 27 years
Monthly repayments 632.19
Fees 999 (will be paid up front)
Actual 5 year cost £39,195.78


So what is meant by actual 5 year cost?
Does this include all repayment fees both capital and interest (obv the capital amount grows each as term goes on).
Does it also include the setup fees?

My calcs:

Cov: 648 x 62 = 40,176 + 499 = 40,675

Notts: 632.19 x 62 = 39,195.78 + 999 = 40,194.78

Meaning by my working (and im probbo wrong) the Notts BS lower rate deal means works out better even though higher fees by just shy of £500 over the term.

So wheres the difference from for the "actual cost over......" to my calcs?

Is the above correct, in this instance with these 2 deals the lower initial rate covers the higher fees and is the one to persue?

Any other tips and advice you guys recommend i look out for?
Like i siad im trying to do as much as i can and learning all the time rather than asking other to do all the leg work for me.

Many Thanks in advance

Kind Regards

Let_Us_See

These are illustrations as the exact date of completion is unknown.

Crashandburn

Thomo2710 wrote: »

So wheres the difference from for the "actual cost over......" to my calcs?

I'm not too sure which piece of software is giving you the actual cost but I would say the Nottingham deal would be more like £38,734 based on a five-year calculation i.e. 60 months and not to the deal end date.

I would say the difference between the two deals would be just over £500 so on that basis, the Nottingham deal would be stronger on the basis you are happy to pay the fees upfront. If going with this deal, I would also only pay their booking fee of £199 upfront on the basis this is all you will lose if the valuation doesn't even make the 80% loan to value. You can ask the lender to add the £800 onto the mortgage and either prior to completion or after completion, you simply make an overpayment to the extent of £800 which means you have paid the fee in effect upfront.

By paying all the fees upfront and then something going wrong, you have lost this money.

Thomo2710

Crashandburn wrote: »

You can ask the lender to add the £800 onto the mortgage and either prior to completion or after completion, you simply make an overpayment to the extent of £800 which means you have paid the fee in effect upfront.

By paying all the fees upfront and then something going wrong, you have lost this money.

That is very good advice, something of which i had not considered.

Thankyou!

Thomo2710

Crashandburn wrote: »

I'm not too sure which piece of software is giving you the actual cost but I would say the Nottingham deal would be more like £38,734 based on a five-year calculation i.e. 60 months and not to the deal end date.

Can u recommend software i can use thats freely available?

The actual cost was just what was taken from a comparison site search for those particular deals.

How did you get to 38,734 please over 60 months?
If i multiply 632.19 x 60 i get 37,391, + 1094 fees = 38485

Am i using wrong workings out to define to amount payable over the 5 year period?

Thankyou

Crashandburn

Yes. The £632.19 figure you have is with the fee added, so you are including it in the monthly payments plus then adding it into the fees.

Without fee being added is £628.40 x 60 + £800 + £199 plus £30 TT fee = £38,733

Not to sure if I'd add in the £140 deed release fee as you may not pay this in 5 years