True-Cost-Mortgages

Calculating your annual mortgage costs only?
Big mistake!

You have planned your dream-home and your financier has demonstrated to you an annuity for a mortgage you think you can afford. Your financial advisor considers your personal finances based on present circumstances and gives you a figure , your minimum mortgage. He believes you can afford the repayment schedule.

However your plan may be flawed. Nowadays you would be wise to consider projected energy costs alongside your annuity . What is the point of living in your dream home if you are under the constant threat of fuel poverty?

Moreover why not future proof yourself and your home against soaring energy costs by taking out a comfort mortgage.

A comfort mortgage means you have an initial investment incorporated into your mortgage to cover the cost of introducing energy efficient improvements into the fabric of the building. Improvements such as super insulating the shell, Mechanical Ventilation Heat Recovery,Solar Panels and renewable energy sources are all measures guaranteed to assure your future comfort.

It is recommended that you consider the annuity of your mortgage combined with prospective energy costs to decide if you really can afford the initial investment for energy efficiency or indeed if you can afford NOT to invest in it!

What is the true-cost-mortgage? Compare the examples by filling in your own figures

Please fill in your own figures

minimum-mortgage
amount with no upgrades included	annual energy-costs for house with minimum-standard
£	£ p.a.
comfort mortgage mortgage with energy upgrades included
amount with energy upgrades included	estimated saving on energy costs
£	%

interest rate	estimated rate of inflation for energy
% p.a.	% p.a.
Initial repayment rate
% p.a.

The annuity for your comfort home in the first year is only £350 higher.
On a monthly base: £29.17

In year 9 your monthly rate starts to drop

Your savings for the comfort-house: 47,357.59£

Your payments during this term	for the minimum-house	for the comfort-home
interest	164,426.27	180,868.90
energy	255,200.88	191,400.66
Sum	419,627.15	372,269.56

The term of this mortgage is 34 years

Decimal places are omitted in favour of compactness

Year	Minimum-mortgage			Comfort-mortgage			Minimum-mortgage		Comfort-mortgage		Savings / Expenses
Year	debt	interest	repayment	debt	interest	repayment	energy-cost	annuity	energy-cost	annuity	Savings / Expenses
1	200,000	8,000	3,000	220,000	8,800	3,300	3,000	14,000	2,250	14,350	350
2	197,000	7,880	3,120	216,700	8,668	3,432	3,150	14,150	2,363	14,463	313
3	193,880	7,755	3,245	213,268	8,531	3,569	3,308	14,308	2,481	14,581	273
4	190,635	7,625	3,375	209,699	8,388	3,712	3,473	14,473	2,605	14,705	232
5	187,261	7,490	3,510	205,987	8,239	3,861	3,647	14,647	2,735	14,835	188
6	183,751	7,350	3,650	202,126	8,085	4,015	3,829	14,829	2,872	14,972	143
7	180,101	7,204	3,796	198,111	7,924	4,176	4,020	15,020	3,015	15,115	95
8	176,305	7,052	3,948	193,936	7,757	4,343	4,221	15,221	3,166	15,266	45
9	172,357	6,894	4,106	189,593	7,584	4,516	4,432	15,432	3,324	15,424	8
10	168,252	6,730	4,270	185,077	7,403	4,697	4,654	15,654	3,490	15,590	63
11	163,982	6,559	4,441	180,380	7,215	4,885	4,887	15,887	3,665	15,765	122
12	159,541	6,382	4,618	175,495	7,020	5,080	5,131	16,131	3,848	15,948	183
13	154,923	6,197	4,803	170,415	6,817	5,283	5,388	16,388	4,041	16,141	247
14	150,119	6,005	4,995	165,131	6,605	5,495	5,657	16,657	4,243	16,343	314
15	145,124	5,805	5,195	159,637	6,385	5,715	5,940	16,940	4,455	16,555	385
16	139,929	5,597	5,403	153,922	6,157	5,943	6,237	17,237	4,678	16,778	459
17	134,526	5,381	5,619	147,979	5,919	6,181	6,549	17,549	4,911	17,011	537
18	128,907	5,156	5,844	141,798	5,672	6,428	6,876	17,876	5,157	17,257	619
19	123,064	4,923	6,077	135,370	5,415	6,685	7,220	18,220	5,415	17,515	705
20	116,986	4,679	6,321	128,685	5,147	6,953	7,581	18,581	5,686	17,786	795
21	110,666	4,427	6,573	121,732	4,869	7,231	7,960	18,960	5,970	18,070	890
22	104,092	4,164	6,836	114,502	4,580	7,520	8,358	19,358	6,268	18,368	989
23	97,256	3,890	7,110	106,982	4,279	7,821	8,776	19,776	6,582	18,682	1,094
24	90,146	3,606	7,394	99,161	3,966	8,134	9,215	20,215	6,911	19,011	1,204
25	82,752	3,310	7,690	91,027	3,641	8,459	9,675	20,675	7,256	19,356	1,319
26	75,062	3,002	7,998	82,569	3,303	8,797	10,159	21,159	7,619	19,719	1,440
27	67,065	2,683	8,317	73,771	2,951	9,149	10,667	21,667	8,000	20,100	1,567
28	58,747	2,350	8,650	64,622	2,585	9,515	11,200	22,200	8,400	20,500	1,700
29	50,097	2,004	8,996	55,107	2,204	9,896	11,760	22,760	8,820	20,920	1,840
30	41,101	1,644	9,356	45,211	1,808	10,292	12,348	23,348	9,261	21,361	1,987
31	31,745	1,270	9,730	34,920	1,397	10,703	12,966	23,966	9,724	21,824	2,141
32	22,015	881	10,119	24,216	969	11,131	13,614	24,614	10,211	22,311	2,304
33	11,896	476	10,524	13,085	523	11,577	14,295	25,295	10,721	22,821	2,474
34	1,371	55	1,371	1,509	60	1,509	15,010	16,436	11,257	12,826	3,610