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Mortgages · Products · FROM THE ACORNBANK FOREST

Treehouse Mortgage — Adding Pretend Nuts

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.

A treehouse in a leafy oak.
A fictional bank, a real sense of humour. All people, places, products and figures are invented. No real banking or financial advice. About this demo.

Demo rate card4.59% fixed for 2 years; then 6.49% assumed variable rate

The pound values and percentages on this page are invented AcornBank product terms, chosen for a realistic bank-style example. They are not current market offers, an invitation to deposit or invest money or a forecast of what a real bank will pay.

Product detailDemo terms
Account typeRepayment mortgage
Rate, reward or charge4.59% fixed for 2 years; then 6.49% assumed variable rate
Illustrative advance£25,000.00 to £500,000.00
AccessMonthly capital-and-interest repayments over 25 years in the illustration
Eligibility in the scenarioAn adult story applicant with a deposit of at least 20% and assumed affordability
Fees£999.00 arrangement fee, paid upfront
CurrencyGBP (£), used solely for fictional calculations

Try your own numbers

Change the amounts to see what Treehouse Mortgage would do in the story. Fictional figures, no application, no advice.

Monthly payment for the first 24 months£1,121.91£200,000.00 advance at 4.59%
Then at the 6.49% reversion rate
£1,334.37
Total interest over the term
£195,213.58Plus the £999.00 arrangement fee
Deposit needed
£50,000.0020% of the price; 80% loan to value

A £200,000 repayment-mortgage illustration

ItemModel amount
Treehouse price£250,000.00
Deposit (20%)£50,000.00
Advance (80% LTV)£200,000.00
Term25 years / 300 monthly payments
Months 1–24 payment£1,121.91
Months 25–299 payment£1,334.37
Adjusted final payment£1,335.99
Upfront arrangement fee£999.00
Total interest£195,213.58
Total repayments plus arrangement fee£396,212.58
Illustrative model APRC6.35%

Selected years of the repayment schedule

YearPayments in that yearInterestCapital repaidBalance at year end
1£13,462.92£9,088.72£4,374.20£195,625.80
2£13,462.92£8,883.68£4,579.24£191,046.56
3£16,012.44£12,289.49£3,722.95£187,323.61
5£16,012.44£11,774.95£4,237.49£179,114.21
10£16,012.44£10,155.68£5,856.76£153,278.16
15£16,012.44£7,917.62£8,094.82£117,569.42
20£16,012.44£4,824.38£11,188.06£68,215.36
25£16,014.06£549.09£15,464.97£0.00

Assumptions: 4.59% nominal annual interest for 24 months, then 6.49% for the remaining 276 months. The latter is a variable rate held constant only for illustration. Interest is calculated monthly on the outstanding balance and rounded to pennies. Payments are recalculated at month 25; the final payment clears the balance. No overpayments, missed payments or fees other than the £999.00 upfront fee. No valuation, legal, tax or insurance costs are included. The model APRC is the annualised monthly cash-flow return using the advance less the upfront fee; it is an illustrative calculation, not a regulated quotation.

Treehouse Mortgage is repayment mortgage in the Mortgages range, used for buying a fictional treehouse. Its live rate card, summary and worked tables sit above this text and update whenever the product record changes.

Adding money to the example

For savings, a deposit increases the principal from the time it arrives; it does not earn a full year of interest if it arrives halfway through the year. A fixed product accepts its single opening deposit only, and an ISA wrapper counts new money against the demo annual allowance. For investments, each contribution buys units at that month’s value. For borrowing products, paying money in is a repayment that reduces debt, not a savings deposit.

Other mortgage terms in the story

There are no overpayments in the repayment table. The separate early-repayment illustration would charge 2% of capital repaid early during months 1–12, 1% during months 13–24 and zero after that; those charges are excluded from the scheduled-payment total. The £999 fee is paid upfront rather than added to the advance. This is not a loan offer, affordability decision or property valuation.

See the whole Mortgages range or compare every product on the rates page.

What the example does not promise

All figures are invented and shown to make the demo useful to read and crawl. No money is held, no application is available, and no deposit-protection, regulatory or tax-wrapper status is claimed. Calculations do not account for personal tax, inflation or unstated changes in rates. The fictional bank manager can guarantee only that the next paragraph contains no real acorns.

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