Broker tools: Cost per thousand 000′ sheet

One of the things that we constantly fall back on in mortgage brokering is the cost per thousand (usually written as ‘cpt’ or ‘cost per 000’) sheet. It gives you the actual cost of borrowing €1,000 at a certain interest rate over a certain period.

Banks tend to send out rate sheets which are particular to their specific products, but we also have our own cheat-sheets which cover most of the prices you’ll find (or at least ball park enough to make the difference meaningless).

If you click on the image to the left you’ll get a pdf of our Cost Per 000′ sheet. The way you figure out how much a mortgage might cost you is as follows:

Divide the mortgage amount by 1,000 (to get 1/1000th) and then multiply by the cost you find from going across the rate column and down the term column.

For instance: you want to see how much it will cost per month to borrow €317,000 over 30yrs at 4.25% then its 317×4.92 = …

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Best Mortgage Rates February 2010

There is increased coverage of mortgages in the press of late in particular in the area of fixing or staying on a variable, below are the best rates available on the market by class of product.

Best Variable Rate with an LTV Restriction:   2.25% Best Variable Rate with no LTV Restriction:   2.55% Best 1yr Fixed Rate:   2.35% Best 2yr Fixed Rate:   2.65% Best 3yr Fixed Rate:   3.15% Best 5yr Fixed Rate:   3.7% Best 10yr Fixed Rate:  4.5%

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Uncharted territory – or maybe we just can't see ahead?

Often companies and economists make forecasts and predictions about the direction of the economy, so it is interesting that two of the largest banks in the UK, Nationwide and Halifax, have decided to scrap any forecasts for 2009. They will continue to give their monthly figures regarding house prices and statistics but gone are the predictions. Halifax said they couldn’t give predictions because of their merger with Lloyds, Nationwide were more brutally honest ‘We can’t because we are finding it too difficult at this time’.

The interesting date in the near future for UK banks is the 16th of January, because that is the date that the FSA have set for the end of the short-selling ban, this will result in one of two things. First is that short sellers will pile in and sentiment with order backlogs will cause a brief spike in prices -if shorts are not naked ie: you are actually paying to hold the option to buy/sell …

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Uncharted territory – or maybe we just can’t see ahead?

Often companies and economists make forecasts and predictions about the direction of the economy, so it is interesting that two of the largest banks in the UK, Nationwide and Halifax, have decided to scrap any forecasts for 2009. They will continue to give their monthly figures regarding house prices and statistics but gone are the predictions. Halifax said they couldn’t give predictions because of their merger with Lloyds, Nationwide were more brutally honest ‘We can’t because we are finding it too difficult at this time’.

The interesting date in the near future for UK banks is the 16th of January, because that is the date that the FSA have set for the end of the short-selling ban, this will result in one of two things. First is that short sellers will pile in and sentiment with order backlogs will cause a brief spike in prices -if shorts are not naked ie: you are actually paying to hold the option to buy/sell …

Read More