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When buying a fixed rate mortgage – what does the term “Overall Cost For Comparison” mean?
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on Monday, November 9th, 2009 at 12:24 pm and is filed under fixed rates mortgage.
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One Response to “When buying a fixed rate mortgage – what does the term “Overall Cost For Comparison” mean?”
The overall cost is the total cost for the term of the mortgage.
That is 5,10,25 years.
It should show all costs for getting the mortgage any fees that are payable on completion of term etc.
AER is the annual equivalent rate which is interest rate that you will pay.
The for comparison is so you can compare the overall cost of the mortgage against any other quotes from banks, building societies who will have different overall costs.
If you have not any other quotes then it would be a good idea to get some particularly in these ‘credit crunch’ days – the quote you’ve got may be very good – on the other hand – you’ll never know unless you look!
The overall cost is the total cost for the term of the mortgage.
That is 5,10,25 years.
It should show all costs for getting the mortgage any fees that are payable on completion of term etc.
AER is the annual equivalent rate which is interest rate that you will pay.
The for comparison is so you can compare the overall cost of the mortgage against any other quotes from banks, building societies who will have different overall costs.
If you have not any other quotes then it would be a good idea to get some particularly in these ‘credit crunch’ days – the quote you’ve got may be very good – on the other hand – you’ll never know unless you look!
Regards