Less is Mortgage

Less is Mortgage is a rough guide to understanding and comparing mortgage cashflow payments. Consider it a digital 'back of the envelope' calculation.

This is a simple maths and charting tool - not a mortgage provider, mortgage broker, or mortgage lender. We do not offer mortgage advice, mortgage products, or mortgage services.

You should not rely on these figures in any way. You should only rely on the figures that your mortgage provider or broker provides you with. These figures won't even match up with the figures your mortgage provider or broker provides you with because we make a number of assumptions which will not be correct:

• we assume that the mortgage debt and payments start on the first day of the next calendar month;
• we do no daily calculations: we calculate the interest due in respect of each calendar month as a whole;
• cross-over points are rounded to the nearest month, but might be rounded up or down a month in some charts;
• base rate changes are adjusted to take effect as of the nearest month-start from the date of the MPC meeting (this will almost always be wrong, and could be before or after the actual MPC meeting date);
• we do not account for any fees or charges that may be payable in respect of the mortgage; and
• we allow for a very wide range of opinions on the base rate forecast, some of which may be highly unlikely and unprecedented.

There are some basic features not included yet:

• we do not account for any fees or charges that may be payable in respect of the mortgage;
• the human readable summaries are very basic, and miss obvious insights;
• we only handle interest only mortgages.

You are free (and encouraged!) to share links to this tool with others (including your customers) - including with custom mortgge parameters.

You are free to use this tool for your own commercial and non-commercial purposes while on this website - however you must not extract the source code to run or copy any of it outside of this website.

This service is provided 'as is' and 'as available' without any warranty or guarantee of any kind - in particular relating to accuracy of the results.

This tool and its source code are copyrighted by Magic Story Club Limited.

Less is Mortgage compares two mortgage scenarios side by side ('Plan A' and 'Plan B'). You can change the details of the mortgage scenarios by clicking on the 'Mortgage Details' button.

Each plan consists of one or more 'rates', each of which is a fixed or tracker mortgage product.

Tracker rates are based on the Bank of England base rate, which is forecast by the ING bank - however you can express an opinion in respct of the base rate forecast (making the magnitude of rate changes smaller or larger, or the timing of rate changes earlier or later.)

Fixed rates are fixed for a period of time, or until a date.

Different mortgage scenarios will have different monthly repayments. At times, which plan is overall cheaper may swap over. This is always preceded by the new overall cheaper plan previously becoming cheaper in each month. We call this period, when one plan is cheaper per month, but is still more expensive overall, the 'twilight zone', and is marked in orange.