How to work out deal differences?

LeonThePro_2

Good evening,
This is driving me mad, how do i work out which is deal is the cheapest?
I am looking at fixed rate 3 to five year mortgages but need to work out if paying the early repayment charge of £810 plus £100 exit fee on my existing mortgage is worth while against various other new mortgages i.e fee, no fee, different rates etc.

There must be a calculation?

Please help me out?

Thanks

homer_j_3

Do you have the details of the deal you are trying to compare?

If so post:

Current monthly payment
Exit fees (Already posted)

All set up fees with new mortgage
New monthly payment
Term of beneficial period
Whether the ERC's extending beyond the beneficial period
Current Exit fees on new product.

KTF

I put together a simple spreadsheet that let me compare the deals when I was re-mortgaging. If you would like a copy then let me know.

LeonThePro_2

KIF, That would be great. Thanks. email is fvag at jamesdavies.net

homer_j
The problem is that we need to increase our current mortgage. Abbey (current provider) have said to take another product on different deal to make up the difference but wonder it would be cheaper to move the whole thing.

I can post all details if you would like.

Thanks

homer_j_3

well you need to add what abbey are offering onto your existing deal

so current mtg = x amount @ x rate = x monthly payment
additional borrowing = x amt @ x rate =x pyment

proposed mtg = x amount @ x rate = x monthly payment

(total of current + add borowing mthly payment) - proposed mtg mthly pymt = monthly payment difference.

you multiply this difference by the benefit period of the proposed mtg (24mths for a 2 yr deal for example) and if this saving outweighs all exit costs and setup costs then you are better moving.

LeonThePro_2

KTF, thanks for the spreadsheet and homer_j thanks for the posts you have both been really helpful.