Mortgage assurance

Darkstar

I am trying to get mortgage assurance and used the Cavendish web site to get some quotes. One part I did not understand is the loan rate. I asked for 5% and was quoted some at 10%, 8% and a few at 5%.

What does this mean and how does it affect my quotes.

poppy_f1

it will be a decreasing mortgage protection policy and the %'s will mean how much the cover will decrease every year

Darkstar

So if I have a similar quote for 5% and 10% the 5% will be the best.

I am still trying to get my head round this. So at 5% my £180,000 will be worth £171,000 after year 1 and 162,400 after year two. Were as at 10% my £180,000 will be worth £162,000 after year 1 and 145,800 after year two.

Therefore after 20 years at 5% it will be worth £64,527 and at 10% it will be worth £21,884.

I still don't understand this.