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Re-Mortgage offer, is it good?

hi.
i have been getting a little advice here and there on this forum about re-martgaging and i have finally looked into one from Coventry Building society, below is the info-
borrow- £100,000
term- 18yrs
monthly repayments- £738.61 at todays rate of 5.65%

the thing is i dont understand where it says i pay back £1.61 for every £1 i borrow (overall cost comparison 6.0%)

this is Coventry Building societys Flexx mortgage and is a managed variable rate, currently 5.65%, set independently of BBS`s standard variable rate, which will not go above the standard variable rate, currently 7.59%, to the end of the mortgage term.

could someone please simplify what they are talking about and wheaher it is a good deal.
there is a £800 booking fee for this and is no term, so wont have to remortgage after 2yrs.
many thanks

Comments

  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    What would you think if interest rates went up?

    Would you be able to meet the repayments?

    Another rate rise could be imminent

    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • vsumouse
    vsumouse Posts: 164 Forumite
    i can afford maybe another 3/4 % but would start to struggle then,
    but is there a better mortgage (maybe fixed out there), i just dont want to pay lots of interest
This discussion has been closed.
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