Bad Mortgage Advice!
Acting on bad mortgage advice could cost you Hundreds of Thousands of Euros.
Often clients will come to us looking for help after they have taken out their mortgage on the advice of somebody who simply does not have their best interests at heart.
By this time it is often too late or will be very expensive to correct their error. A few easy examples of clients simply throwing away their money by not speaking to an expert.
Example:
- Client takes out a 200,000€ mortgage, interest only, 7.5% interest rate over 30 years.
- Monthly payments are 1,250€.
- After 30 years they would have spent 450,000€ and still owe their bank 200,000€. A total of 650,000€
Lets look at an alternative:
- Client takes out a 200,000€ mortgage, repayment, 7.5% interest rate over 30 years.
- Monthly payments are 1,398€ per month or 148€ per month more than the original.
- After 30 years they would have spent 503,434€ but crucially would not owe their bank any money. A difference of almost 146,720€!!!
The same client could also reduce the term of the mortgage from 30 years to 25 years, so:
- Client takes out a 200,000€ mortgage, repayment, 7.5% interest rate over 25 years.
- Monthly payments are 1,478€ per month or 228€ per month more than the original.
- After 25 years they would have spent a total of 443,394 and would owe their bank zero. A difference of 206,606€!!!
To summarise, in this example by spending only 1,478€ per month instead of 1250€ per month this client would save over 200,000€, which over 25 years equates to 689€ per month and that is before we even attempt to improve the interest rate.
So, if you want to make savings like this on your mortgage – Contact us now
