Comparing two 5 year fixed deals

andrewb8910

Hi,
This is my first post, I'm trying to compare 2 mortgages for a flat I am looking to buy and any help with the decision would be appreciated!
Both are for a £205,000 property, £70,000 deposit for 25years.

• Nationwide (through L&C), 3.29% fixed +1.5% to rent, monthly repayment £662, upfront fees £389, incorporated arrangement fee £400, End fee £90, Free overpayments up to £500 monthly, ERC 5%
• Chelsea Building Society, 2.99% fixed +1% to rent, monthly repayment £639, upfront fees £520, incorporated arrangement fee £1300, End fee £90, Free overpayments up to 10% per year, ERC 5%, 4%, 3%

To me CBS wins in almost every way, upfront fees will be outweighed within a few months, less of a penalty should I choose to rent the flat out. The only disadvantage I can see is restricted overpayments.

Have I overlooked anything?

Any help welcomed!
Thanks
Andrew

kingstreet

The freeholder will grant you permission to sublet? Check this before including the cost of CTL in your mortgage planning.

TrickyDicky101

Do you intend to let it from the start, or are you considering this cost simply in case you need to let it in the future? If the former then you need a BTL mortgage, not a residential one and proceeding on the basis of a residential one is mortgage fraud.

dimbo61

Restricted overpayments !!!
10% a year of £135K mortgage is £13500 or over £1000 a month
Much better than the £500 a month to Nationwide

andrewb8910

Thanks for the responses,
I have no intension of renting it out, just want to be au fait with all the ins and outs.
Ah yes, the 10% was a misread, CBS wins on that point too!