Five years fixed, then re-brokered.
A fixed rate is a promise about sixty months, not about a term. What happens in month 61 is the part most people never plan, and it is the single largest avoidable cost on this page.
£1,379 a month for the fix. Reverting untouched would take it to £1,941.
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Completion. The rate is locked for sixty months.
4.19% fixed, £1,379 a month, and an early repayment charge that steps down each year of the fix. The ghost line on the elevation is the same house on the rate this client's own bank offered.
Month 60. The fix ends, and the two cases part.
Both have bought exactly 10 courses. From here one is remortgaged onto 4.37% and one is not: the payment on the second jumps to £1,941 and its fill visibly slows. Nothing about the house changed.
Month 120. Three courses of daylight.
17 against 14, and £15,628 of it in money. This is the gap a remortgage reminder buys, and it is why we diarise every fix we arrange.
Month 180. The gap is at its widest.
25 against 21. After this it narrows, because the case on the variable rate is paying far more each month to catch up, which is the expensive way to arrive at the same place.
Month 240. Both are running out of term.
A 25-year term ends whether or not the rate was right, so both houses will be fully owned. The difference was never the finish; it was what it cost to get there.
Month 300. Same house, two different bills.
£162,673 of interest on the brokered case against £302,782 on the one that was left alone.