Choosing Best Morgage

LondonForLess

Hi, I'm looking for a mortgage and I'm stuck between 2 main choices. Both are lifetime tracker morgages.
To simplify the comparison lets say the mortgage amount is 300K and I plan to make repayments to cover both interest and capital.
Option 1 is with First Direct. Its 1.79 above base, so currently 2.29%.
Option 2 is with ING. Its 1.99 above base so currently 2.49%.
The arrangement fee for FD is only £99, while ING charges £995.
My plan is to make over payments, most probably in irregular lump sums, but to min of £6K/year for at least the first 2 years, to help protect myself against future rate rises.
On face of it FD deal looks best, but the length of the mortgage available is the sticking point. FD will only offer a 23-25year loan where ING will offer 27-30year loan.
Is it better to go with ING as the longer morgage period will reduce my monthly required payment by about £198, therefore increasing my capacity to pay even greater overpayments?

jockosjungle

If you can afford to overpay I don't see the difference really, except with ING you will be paying more interest in the longer term on the higher rate and over a longer period and £900 more for the privelage. If the length of time is bothering you, you could always remortgage in ten years time and increase the rate

If you can afford the FD go for it, if you cannot I would seriously consider whether you can realistically afford a £300k house, those rates are a tracker and you could easily find yourself paying double that rate within a year