From: Timothy Lee 
Newsgroups: uk.finance uk.legal
Subject: Re: Query on Annual Mortgage Interest calculation
Date: Tue, 16 Sep 2003 09:41:44 +0100

In article , john boyle
 writes
>In message <$cNOFBAn0ZZ$EwaX@town-village.freeserve.co.uk>, Timothy Lee 
> writes
>>In article , john boyle
>> writes
>>>In message , Doug Ramage
>>> writes
>>>>Even comparing APRs can give strange results - I find that comparing actual
>>>>monthly repayments to be a more accurate method.
>>>
>>>Yes I take your point, but you need to do it over the whole period of
>>>the mortgage, not just during the 'offer' period.
>>
>>Not necessarily, over the whole period of the tie in.
>>
>Not so.
>
>This wont work - you need to cover the whole remaining loan period.

What I mean is, rather than comparing product A that goes eg fixed for
five years, variable for 20, tied in for five years and product B that
goes capped for five years variable for 20 tied in for five years,
shirley the assumption for working out which is going to be cheaper is
to work out total cost over the tie in period and assume a remortgage
once redemption penalties are out the way.

-- 
Timothy Lee http://www.wightproperty.com