I can't get my brain around how to work this out and thought you lovely people would be able to help!
If a Santander mortgage rate is say 3.24% but you have a 123 current account giving you 1% cashback what does that effectively do to the rate?
On a £140k mortgage the interest would be £4536 for the first year.
If the repayments were £1000 that would be £10 per month cashback so £120 per year.
Take this off the interest and £4416/£140000 is 3.15%
Is that right or is it too simplified?
Confused!
If a Santander mortgage rate is say 3.24% but you have a 123 current account giving you 1% cashback what does that effectively do to the rate?
On a £140k mortgage the interest would be £4536 for the first year.
If the repayments were £1000 that would be £10 per month cashback so £120 per year.
Take this off the interest and £4416/£140000 is 3.15%
Is that right or is it too simplified?
Confused!