Borrowing Costs
This is the approximate amount that you can expect to pay in interest over the life of the loan based on the terms contained in this bid. It does not include any repayments of loan principal or any initial/ongoing fees associated with the loan. These interest costs are calculated using the interest rates a lender has quoted in their bid for any fixed term period(s) then the lender’s current floating interest rate is used in the calculation for all loan periods extending beyond any fixed term component. For the purposes of the calculation any revolving credit component of your loan is treated like a fixed limit overdraft facility - where there are no obligations for you to make principal repayments. We have done this calculation on a standard basis for all lenders to assist you in comparing bids. We note that in practice, different lenders may have slight variations in the approach that they use to calculate total borrowing costs.
More Glossary Terms
- Assets
- Auction
- Body Corporate
- Borrowing Costs
- Break Costs
- Bridging Arrangements
- Capital Gain
- Capital Value (CV)
- Capitalise
- Capped Loans
- Certificate of Title (of CT Reference)
- Chattels
- Commission
- Company Title
- Conditional Agreement
- Credit Contracts and Consumer Finance Act
- Credit Report (or Credit File)
- Creditor
- Cross Lease
- Current Market Value
- Debtor
- Declaration
- Default
- Default Margin
- Deposit
- Depreciation
- Discharge of Mortgage
- Dividends
- Drawings
- Equity
- Equity Release Mortgage(or Reverse Asset Mortgage)
- First Mortgage
- Fixed Interest Rate
- Fixed Term (or Fixed Rate Period)
- Floating Interest Rate
- Freehold
- GV or Government Valuation
- General Loan
