Choosing between two mortgages

Graeme7777
Graeme7777 Posts: 255 Forumite
First Post First Anniversary Combo Breaker
in Mortgages & endowments
Hi,

I have a choice between two mortgages and I was hoping that someone could please tell me which is the cheaper option.

Both are repayment mortgages for around £250k, fixed for around 5 years and I will re-mortgage after the end of the fixed period so the SVR to which they will revert is not relevant to my choice.

The details are:

Mortgage 1 - 1.74% pa fixed for 62 months. Upfront fees of £900 (added to the loan) and £129 payable by bank card.

Mortgage 2 - 1.94% pa fixed for 61 months. Exit fee at end of fixed period of £225

Can someone please suggest which is, on the facts I've given, the cheaper option (and why).

Thanks!

Comments

  • Neutrinno
    Neutrinno Posts: 310 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Mortgage 1 would be cheaper over the 5 years and also leave a lower remaining debt after the 5 years. Have a look over the MSE mortgage rate calculator which will help you with a basic calculation like this.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Graeme7777 wrote: »
    I will re-mortgage after the end of the fixed period so the SVR to which they will revert is not relevant to my choice.

    Perhaps not. However remortgaging to a new lender isn't a cost free option. Remaining with your choosen existing lender won't incur the same level of charges if any at all.
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