Remortgage with Clydesdale

baskey

Hi,
My property value is £270K and I am looking to borrow £135K .
I am currently with Virgin Oneaccount @ 4% variable rate offset mortgage. I got a remortgage offer from Clydesdale bank for 2.89% for 2 years, offset, standard variable rate is 4.95% afterwards with a product fee of £995.

Considering the product fee and their current standard rate, I am not sure whether it is a good offer or not. Please share your opinion.

Please note that as I am currently contracting ( for the last 6months) many lenders those who offer lower rates, did not offer me though my LTV is good. So do not suggest me other bank unless you know they will accept contractors. My dilemma is whether to stick with Virgin or move to Clydesdale.

Thanks for your advice in advance

dimbo61

The new rate would save you £75 a month if you add the £995 fee onto your existing debt. So £75X24=£1,800
But this does not take into account other costs ( Legals, searches, survey ETC) and the rate at the end of the fix is higher.
For me it would not be worth the trouble and I would overpay/Save into offset account the existing mortgage as Unlimited Overpayments? as now on Variable