Comparision

follyfoot

Hi

I am remortgaging to a BTL. I notice some BTL have very high arrangement fees but low interest rates whereas others have high interest rates and low arrangement fees. can anyone advise how I can make a comparision - should i just be looking at what the mortgage costs me each month or are there other factors to take into consideration?

Doozergirl

If you are getting a fixed deal and plan to remortgage in say 2 years when that deal ends, then you add the entry and exit costs to the total payments over a two year period and then divide it back down by the number of monthly payments.

If it's longer, the difference is likely to be negligable but you can always do the same.

We used a whole of market mortgage broker who would present us with what he thought were the best deals then we'd work out the monthly cost over the period we needed. If you do it that way, you'll have less maths to do!

follyfoot

I was looking at a 4.99% deal but the arrangement fee was £2800 and the monthly payments £530. I had thought this one looked better than the 5.19% with an arrangement fee of £1620 and monthly payment of £558 but overall I would be paying back more with the 4.99% deal. Arrangement fees seem to be extortionately high on some products.