Cost of Credit

Managing Debt Cost of Credit

 

The following example, estimates the impact a financial arrangement* may have on the total cost of credit on your mortgage.

This illustration is based on a typical €100,000, 20 year standard variable rate mortgage at 4.6% APR, with the cost per month of €632.65 excluding insurance. The total amount repayable is €151,835.85. **The total cost of credit (total amount repayable - mortgage amount) is €51,835.85. If rates increase by 1% an additional €55.27 would be payable monthly. The total cost of credit with a 1% increase is €65,092.95.

This example shows a mortgage that was drawn down two years prior to an arrangement being put in place.

 

Arrangement 

 

 

Term

                                    

Monthly payment prior to the deal *Monthly repayment during the period of the deal Monthly payment when deal ends As a result of this temporary arrangement, the total cost of the credit may increase by 
Interest only 12 months              €632.65 €351.84 €656.90 €1,577.01
Payment reduced by €330 6 months €632.65 €302.65 €646.42 €911.42
Moratorium 6 months €632.65 £0.00 €658.80 €1,695.56
Term extension 5 years €632.65 n/a €544.62 €13,550.39

* Flexible payment options may appear cheaper in the short term but could be more expensive over the life of the mortgage and are subject to approval.

 

** The total cost of credit is the total amount repayable less the amount of the original mortgage value. For illustration purposes it is calculated using a variable interest rate and is therefore subject to change. Rates and repayments are correct as of the 8th December 2014.

YOUR HOME MAY BE REPOSSESED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

VARIABLE RATE LOANS: THE PAYMENT RATES ON THIS HOUSING LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME.

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