Overall cost for comparison

bluestone_2

Looking at mortgages and its getting more confusing to choose which rate to go for .

Everyone states the "overall cost for comparison" but should I be looking at this or the initial rate only? and then remortgage after the fixed period?

Anyone recommend any software or spreadsheet to workout the true cost of a mortgage for comparison?

Thanks

PasturesNew

Look at the overall cost.

e.g.
[1] I lend you £1000 for 1 year at 10%. So you pay me back £1100. Overall cost = 10%
[2] I lend you £1000 for 1 year at 5%. So you pay me back £1050. 5%. But I charge you a setup fee of £150. Overall paid back is £1200. Overall cost = 20%

Overall cost shows what you end up paying in the long run ... the low starter figures often disguise charges which make the overall lending more.

MarkyMarkD

It's not (that) hard to work out the true cost over the comparison period - i.e. the period you want to keep the mortgage for. The Moneyfacts website will show true cost if you set the parameters correctly in the search engine.

bluestone_2

Thanks for the replys.

What I really trying to do is compare the range of 2/3 yrs fixed rate mortgages, and see which one works out best for that fixed period of time (2/3 yrs). With all the different rates and differnent fees attached to each mortgage, I am looking for a spreadsheet or program so I can just punch in the rates and fees and compare them, and see the actual total payout at the end of the fixed rate period.

Sorry I didn't make it too clear (hope its clearer)

Thanks