Owning your own home

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ChasnotRobert

Does it make sense to pay £1000 for a mortgage product which saves just over £1,400 over 5 years?

I guess discounting the £1,400 back to present value would suggest not. But it still saves actual cash over the term.

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NotThamesWater in reply to @ChasnotRobert

I guess discounting the £1,400 back to present value would suggest not.

What discount rate are you using?

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ChasnotRobert in reply to @NotThamesWater

I haven't bothered to do the calculation. Money in the bank doesn't actually generate anything so arguably 0% discount rate is fair.

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