To calculate the "True Monthly Cost" our system adds up the monthly interest payments due over the period where early repayment charges ( ERC's) apply, any costs which you have to pay at the outset of the mortgage, such as valuations and booking fees, any exit fee that is applied should you remortgage and deducts any benefits such as cash-backs to give the total figure. 

The calculations are made based on a loan size of £150,000, a loan to value of 60% and a term of 25 years.

This figure is divided by the number of months that the early repayment charges apply for [or the benefit period if ERCs do not apply] to give you a true monthly cost and provide a comparison tool between all our products, this does not depend on the number of years you keep the product for and assumes that you will keep the product past the term of the early repayment charges, so as not to incur the charge.