The examples illustrated below are based on a €200,000, 20 year standard variable rate mortgage at 4.5% APR, with the cost per month (normal monthly repayments) of €1265.30 excluding insurance. The total amount repayable is €303,672. The total cost of credit (total amount repayable - mortgage amount) is €103,672.
Examples 1 – 4 are arrangements involving lower repayments to the normal monthly repayments over a certain time-period. Consequently the cost of credit is higher where lower repayments are being made
Note: For simplicity, these examples are based on the same interest rate being applied over the entire repayment term. Any interest rate change, up or down will increase/decrease the cost of credit accordingly
