Treehouse Mortgage
A made-up mortgage with a two-year introductory fixed rate. The repayment table includes the assumed rate change after month 24, so the attractive opening payment is not mistaken for a 25-year guarantee.
Mortgages at a glance
The jump is the reversion rate; the total cost table on the product page includes the fee.
View as a table
| Category | Monthly payment |
|---|---|
| Months 1–24 | £1,122 |
| From month 25 | £1,334 |
Mortgages questions
Shared with every product page in this range and the full FAQ list.
What deposit does the mortgage example assume?
A 20% deposit: £50,000 on a £250,000 treehouse, giving a £200,000 advance at 80% loan to value.
What happens after the two-year fixed period?
The payment is recalculated at the assumed 6.49% reversion rate, so the monthly amount rises from £1,121.91 to £1,334.37 in the model. The reversion rate is held constant for illustration only.
What fees does the mortgage carry?
A £999 arrangement fee paid upfront, included in the total cost figure. No valuation, legal or insurance costs are modelled.
Can I overpay?
Not in the repayment table. A separate illustration would charge 2% of capital repaid early in year one, 1% in year two and nothing after that.
What is the illustrative APRC?
The annualised cost of the whole schedule including the upfront fee, calculated from the monthly cash flows. It is a model figure, not a regulated quotation.
Borrowing to buy a fictional treehouse, with a full repayment schedule, an upfront fee and the payment change after the introductory fixed rate. The illustration deliberately shows the reversion rate so the attractive opening payment is never mistaken for a 25-year promise.
How to choose
Read the monthly payment for months 1 to 24, then the payment from month 25 at the assumed reversion rate, then the total cost including the arrangement fee. The example assumes a 20% deposit and no overpayments; a different deposit, term or rate would need a fresh calculation. Nothing here is a loan offer, an affordability decision or a valuation.
Other ranges: Current accounts, Savings, Loans, Credit cards, Investments, Insurance. Every figure on this page comes from the live product record, so a changed rate is reflected immediately; the rates page compares the whole range.
AcornBank: entirely fictional banking, exceptionally committed squirrels.