New mortgage query
Discussion
Just coming to the end of my current fixed deal which is on a rate of 1.79% which costs £205.83 a month.
Gone online to switch to another mortgage with the same lender and the best they can offer is a 2 year fixed also at 1.79% but this costs £207.62 a month!
I know it's less than £2 a month but I can't understand why it's not the same as it's the same % rate.
Am I missing something?
Gone online to switch to another mortgage with the same lender and the best they can offer is a 2 year fixed also at 1.79% but this costs £207.62 a month!
I know it's less than £2 a month but I can't understand why it's not the same as it's the same % rate.
Am I missing something?
The reason is that when they show the quotes they don't take into account any payments made between now and the switch date. When you go through the actual process you select a start date which then recalculates the monthly cost (assuming the don't default). When I did this the new monthly payment was the same as the old one.
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