Saturday, Sep 30, 2006

35 billion 'never-ending mortgage' trap for not sticking to or reducing the term of the mortgage

Firstrung: Homeowners: beware the never ending mortgage trap - moneysupermarket.com

For example, someone who extends the term of their home loan twice in their lifetime can end up paying 28,835 in additional interest. Given the average homeowner remortgages/takes out a new mortgage every five years - if a person takes out a 25-year mortgage, then remortgages in five years to another 25-year term, they effectively create a 30-year total term. The five-year extension will cost an additional 14,460 in interest charges. If they remortgage again in another five years, they would pay further interest of 14,375.

Posted by converted lurker @ 12:21 PM (859 views)
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2 Comments

1. Rayman740 said...

Me and the family been looking to buy down in Cornwall for the last 6 months, wife is with my mum at the moment, and property is still moving and asking prices are being met within 5%. Not surging but ticking along. Properties which have poor location can't shift but those that do are soon snapped up.

Monday, October 2, 2006 07:31AM Report Comment
 

2. Rayman740 said...

Me and the family been looking to buy down in Cornwall for the last 6 months, wife is with my mum at the moment, and property is still moving and asking prices are being met within 5%. Not surging but ticking along. Properties which have poor location can't shift but those that do are soon snapped up.

Monday, October 2, 2006 07:31AM Report Comment
 

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