Abbey 2 year fix for existing customer

Sponge

I'd appreciate some comments on the offer I've been given and the situation I'm in. :money:

Some background: £87,803 repayment over 25 years. LTV ~ 73%

If I want what they're offering, I have to decide on a remortgage with my current lender, Abbey, in the next few days. I got the paperwork on a 2 year fix @ 4.49% with a £100 fee last week and it needs to be returned within 14 days to get the deal. (This is what they told me on the phone. They said their deals changed frequently.)

Crunching the numbers using a spreadsheet I obtained from this forum, the numbers don't look too bad. I think what's helping is the lack of fees. The rate might not be as good as other lenders, in fact, it's not as good as what Abbey are offering new customers but when you add the £225 cancellation fee (if I were to move to another lender) and fees of up to £1000 from the new lender, it works out to a difference of, in one example, £20 per month more. (Compared to Natwest 2yr @ 3.99% + £799.)

Obviously, I'd rather the £20 pm was in my pocket, but if my figures are correct:

Abbey vs Natwest
Total cost up to the end of year 2 £11,804.54 £11,440.85
Total capital remaining at the end of year 2 £83,843.73 £84,323.38

Abbey costs more over 2 years, but I end up with a lower balance as well.

I'm thinking that the benefits of not having to go through all the paperwork, valuations, checks, etc, associated with changing lender must be worth something. But then another voice asks, 'Are they worth £20 pm?' Should I seek a better rate, lower monthly payments, with another lender, even if it means weeks of paperwork, valuations, etc? :think: Part of me is worried that a valuation of my home might be lower than I'd hope for and put me over the 75% line, meaning I won't get any better offer anyway.