Which Mortgage?

mattrobbo99

Borrowing 225k

HSBC 4.89% 5 year fix with approx £700 fees
First Direct 4.99% 5 year fix fee free

I think that they are almost identical over 5 years. Any advice as to which is better? Anything else I need to think of?

Current SVRs are almost the same

sunshinesadly

I think you're right. They look identical, especially when you factor in the whopping £700 fee. Personally I don't want to pay fees for a mortgage so would go for the fee free one. These banks get you some how!

Other things to consider would be any restrictions on the mortgage, i.e. can you make overpayments, level of redemption fees if you leave the deal early, etc.

dimbo61

I am guessing that the LTV is 85/90% for that rate of 4.89/4.99%.
It gives you 5 years security and the chance to overpay and get the LTV down to 75% when you look round at remortgage next time.

getmore4less

what term? say 20 £1484pm

after 5 years

£225000 @ 4.99% £187,716.68
£225700 @ 4.89% £187,433.55

paying the fee is cheaper over 5 years.

Interest ony cheaper by £16pm so pays the £700 fees and saves another £375ish.

HappyMJ

Not much different but the banks are the same anyway as first direct is owned by hsbc. If I had to pick one I'd probably go with hsbc.