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Mortgage-UK
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Version
1.4
Mortgage-UK calculates the true cost of a mortgage and
allows you to compare the effect of different interest
rates and overpayments. It is designed for the UK
market, but may work for other country's mortgage
systems. It runs on all versions of Windows.
Use Mortgage Manager to create an icon for each
mortgage you are evaluating, then enter values such as
the mortgage amount, fixed/discounted/capped/cashback
rates and the interest calculation period as well as
one-off administration costs. Payment details are then
calculated with a month-by-month break-down of the
payments and the running total. You can modify the
interest rate and add over-payments to see their effect
on the costs. Different mortgages can then be compared
to see which is cheapest over various periods of time.
But why do you need it? Because it's not possible to
know which mortgage is cheapest just from the headline
interest rate. Try this: Which is cheaper over 25
years? (1) A 3 year fixed rate of 4.5% with a setup fee
of 300 and then a variable rate of 5.5%, or (2) A 5
year fixed rate of 5.0% with a setup fee of 200 and
then a variable rate of 5.5%? If you don't know, then
you need Mortgage-UK to save you money.
When you choose a mortgage it is easy to just pick the
one with the lowest rate. This is not always a wise
choice however since factors such as setup fees,
redemption penalties and the variable interest rate all
have a significant effect on the overall cost. The only
sure way to find the cheapest is to calculate the
payments under the different interest rates, add them
up and add on the fixed costs. Not much fun when you
consider the hundreds of mortgages on the UK market and
the mathematics behind them. Mortgage-UK can do all
this for you and could save you thousands!
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