Managing Debt - Cost of credit
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 variable rate mortgage at 4.3% APR, with the cost per month of €616.57 excluding insurance. The total amount repayable is €147,976.80. **The total cost of credit (total amount repayable - mortgage amount) is €47,976.80 If rates increase by 1% an additional €54.48 would be payable monthly. The total cost of credit with a 1% increase is €61,052.
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 the deal ends | As a result of this temporary arrangement, the total cost of the credit may increase by |
|---|---|---|---|---|---|
| Interest only | 12 months | €616.57 | €327.69 | €640.84 | €1,459.72 |
| Payment reduced by €340 | 6 months | €616.57 | €276.57 | €630.43 | €855.63 |
| Moratorium | 6 months | €616.57 | €0.00 | €641.70 | €1,551.64 |
| Term extension | 5 years | €616.57 | €527.97 | €527.97 | €12,628.62 |
* 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 7th February 2012.
WARNING YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT.
VARIABLE RATE LOANS: THE PAYMENT RATES ON THIS HOUSING LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME.
