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what one is better

Auzelia
Auzelia Posts: 806 Forumite
edited 5 September 2009 am30 9:18AM in Mortgages & endowments
RBS mortgage deal.

2 Year Fixed Rate
£229.89 3.69% 31/10/2011 4% 4.2% APR 25% £799
3 Year Fixed Rate
£247.32 4.39% 31/10/2012 4% 4.3% APR 25% £499
5 Year Fixed Rate - First Time Buyer Exclusive
£289.66 5.99% 31/10/2014 4% 5.0% APR 10% £0

Obv there is a diff of roughly £60/£40 a month but does this get balanced out due to there being no arrangement fee for the 5 year fixed rate.

Its all so confusing :D

Comments

  • You might want to put some spaces in there, I'm confused and cannot read the details you've put, how much is the arrangement fee on the other two?
    "You've been reading SOS when it's just your clock reading 5:05 "
  • 2 year fixed rate has arrangement fees of £799
    3 year fixed rate has arrangement fees of £499
    5 year fixed rate has no arrangement fee.
  • You need to compare like for like i.e. 2 year deal against 2 year deal.

    Otherwise, the choice over 2,3 or 5 years has to include the cost of leaving the current lender after 2 and 3 years, and the cost of setting up the new deal again after 2 or 3 years

    You can then see if it is better to do that way or stick with the 5 year deal instead
    I am a Mortgage Adviser
    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.
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