Mortage Switching: Q re interest on total or remaining capital?

[Round Tuit]

Sorry about long Thread title . . .

I’m considering changing my mortgage around. I’m currently with EBS (they were the only ones who would give me enough to buy 3 years ago). The outstanding amount is approx 180,000. The term left is 26.5years. I’m on their standard Tracker rate & my LTV is probably just over the 50% mark.

Someone has told me that while the EBS might not seem best value on the face of it that they charge you interest only on what’s left of the loan not on the full initial loan amount which is what other suppliers do and they say this makes EBS cheaper in the long run.

I can’t find any evidence of this and thought I’d get it cleared up here before I start my shopping around. I’ve a recently matured SSIA too, some of which I’d be willing to use to pay off some of mortgage if it meant me getting a better LTV rate, though it appears a small mortgage - single, small apt - and lower rates don’t go.

 

[ClubMan]

Someone has told me that while the EBS might not seem best value on the face of it that they charge you interest only on what’s left of the loan not on the full initial loan amount which is what other suppliers do and they say this makes EBS cheaper in the long run.

Doesn't make sense and sounds like the sort of obfuscation and inaccuracy touted about CU loans and the like. Check the (normal - not discounted) APR and/or cost per thousand. That will tell you who offers the best value for money.