What doesn't the cost figure include?
1. The total cost calculation doesn’t include any insurance that the lender insists you take out in order to get the deal you wish.
2. The total cost calculation doesn’t tell you anything about any early redemption charges (ERC) that you will be charged if you pay your mortgage off before the end set date. However, you may decide that it is worth paying more for your mortgage if it means a cheaper ERC.
3. The total cost calculation has to make an assumption as to what the variable rate will be at the end of a special deal or discounted rate. It will assume that it is the same as the lenders current rate and that it doesn’t fluctuate. However, in reality this is not the case so this idea is especially unreliable.