Actual Mortgage Rate ?

[tali1]

santander mortgage rate is 2.59% and with a 123 account you get 1% off per month -so what is the actual interest rate - 1.59% ? (i think that is wrong?)
Thx

[factor-fiction]

Are you sure you don't just get 1% cashback on your monthly payment? That would bring rate down in effect from 2.59% to just over 2.56% I think

[dzug2]

2.59% less 1% is approx. 2.56%

Depends what the 1% is off - the interest or the rate of interest.

[ubasses]

You get 1% cash back on your mortgage payment each month.

[Clanad]

… and, if you were here in the US I'd advise that the interest rate isn't equivalent to the actual Annual Percentage Rate (APR). The APR takes into account not only the interest rate but also points, broker fees, and certain other credit charges that you may be required to pay, expressed as a yearly rate. These "fees" are rolled into the mortgage and you pay for them over the life time of the mortgage and so they add additional costs to the actual interest rate you've been quoted… Maybe they do things differently in the UK.