Which fix is cheaper?

kingstreet

PeteW wrote: »

ING didn't budge sadly. Their sales guys just use the same web tool and there's no room for negotiation.

Will try with Yorkshire tomorrow.

£85,000 difference in borrowing power just because you have two kids? That's absolutely incredible. What do they think you spend on them? At 4 x your income, they are suggesting two kids cost £20k a year? That's preposterous! :eek:

getmore4less

To do the comparisons properly you have to.

1: do upfront fees, either add or remove the difference from the relevent mortgage.
2: make the payments the same.

3: look at the amount left on the time dcles you want.

4 deal with exit costs ad or remove as appropriate(id staying because the follow on is good you may not have any)

The final amount owing tells you whci is the best.

If you just addup what you spend you get the wrong answer.

kingstreet

getmore4less wrote: »

To do the comparisons properly you have to.

1: do upfront fees, either add or remove the difference from the relevent mortgage.
2: make the payments the same.

3: look at the amount left on the time dcles you want.

4 deal with exit costs ad or remove as appropriate(id staying because the follow on is good you may not have any)

The final amount owing tells you whci is the best.

If you just addup what you spend you get the wrong answer.

You're going to have to have another stab at explaining this to me again. Before you went away we were pondering this and never got to the bottom of it.

I've always taken the total of the mortgage payments over the offer period and added to it any fees which might be payable and deducted any cashback.

The final figure is the total cost to hold that mortgage for the offer period.

IMHO you can't factor the rate which applies at the end of the offer, particularly if it's a five or ten year fix because you have no idea of that lender's position at that time.

Can you lay out your method, in steps, using an example that I can follow? Incidentally, I've just changed from Trigold to Mortgage Brain and it works out the total cost for me, so I'm even more interested in how you do it.

anh1904

HSBC discounted rate, up to 60% ltv, is 1.99% at the moment, 20% overpayments based on monthly payment, early redemption fees only in the discount period - can't believe there wouldn't be cheaper still out there too.

alanfp

kingstreet wrote: »

£85,000 difference in borrowing power just because you have two kids? That's absolutely incredible. What do they think you spend on them? At 4 x your income, they are suggesting two kids cost £20k a year? That's preposterous! :eek:

Er... 4 and a bit % of £85k is about £4k p.a. not £20k (interest only). I reckon my two cost me £4k pa easily.

anh1904

I wish my two only cost me £4k, I pay more than that in maintenance to their mother, so in theory they should cost at least £12k assuming she pays an equal amount for their well being and development.

lkmc01

Yorkshire Builind society (and their partners) would only lead us £19,000 over 25 years and £27,000 over 35 years.

We are 26 and 27 years old with a household income of £18,500 (taking half of overtime into account) before tax credits and child benefit. We have one son, a 5 year old. We wanted to borrow £63,750 which is 75% LTV (85 grand house). We are first time buyers.

Nationwide have accepted us with no problems and would have lent us up to 79 grand.

TrickyDicky101

alanfp wrote: »

Er... 4 and a bit % of £85k is about £4k p.a. not £20k (interest only). I reckon my two cost me £4k pa easily.

Difference in mortgage obtainable due to having 2 kids £85k. Standard mortgage multiple 4x salary implies cost of children £85k/4 = £21.25k pa. Not sure why you brought 4% into it.

kingstreet

TrickyDicky101 wrote: »

Difference in mortgage obtainable due to having 2 kids £85k. Standard mortgage multiple 4x salary implies cost of children £85k/4 = £21.25k pa. Not sure why you brought 4% into it.

Thanks for that, mate.