Can I pick your brains please folks.....!

[Deleted User]

Hi,

I am researching the world of the mortgage, and trying to understand as much as possible, before I take the plunge.

My question for the moment is regarding Overall cost for comparison & "London & Country mortgages"...

I understand that the overall cost for comparison is designed to show the total yearly cost of a mortgage stated as a percentage of the loan; but I am confused as to why L&C's website states < THE OVERALL COST FOR COMPARISON IS 7.8% APR> at the bottom of their homepage? As I understand it, L&C are simply a no fees whole of market broker, so why do they state this figure, when they don't actually sell mortgages of their own?

Apologies if this is a stupid question, but I am just beginning my revision!

Thanks in advance.
Goldfinger.:D

[Deleted User]

Surely I haven't asked a question that no one can answer?!

vwjo

Just so that you know you ain't being ignored Goldfinger.... I don't know either! :-)

Tiddler_2

When a mortgage broker does advertising (including websites) they will often quote what their typical or average APR is (note is average APR, not average rate of the initial deal!). As brokers can cover a variety of circumstances then it is just a case of taking the averages of all of those deals that they have written business on, at the time the advertisement is produced.

As always the actual rules/regulation are a lot more complicated, as to when they must quote a figure, than what I have put, but that is basically the reasons why.

[Deleted User]

Tiddler wrote: »

When a mortgage broker does advertising (including websites) they will often quote what their typical or average APR is (note is average APR, not average rate of the initial deal!).

That was the only thing I thought it might be; so thank you very much for confirmation.:T