Reservation fee !!

Hi

Am about to Remortgage

My current mortgage is with Nationwide(was a first time buyer!!)

4.95 % Fixed 2 years(Finish 30 Sept 2007)

102.5K Mortgage

I am currently over paying £250 per month

Thinking about getting mortgage for 20 years(Instead 23years)

Been offered

2 year fixed deals

6.48% NO FEES
6.08% £399 FEE
5.98% £899 FEE

Does adding the fee to mortgage make a BIG difference in my mortgage payments?

I have got the money to pay up front

What has everbody else done with their fees?

Many thanks

Stevie

Replies

  • I had to pay £300 to get a 3 yr reduced rate of 5.3% (now 5.6% since the last rate rise). I paid this up front because if you add it to the mortgage you pay for it over the life of the mortgage, which adds up to a heck of a lot of interest!
    Mortgage Free in 3 Years (Apr 2007 / Currently / Δ Difference)
    [strike]● Interest Only Pt: £36,924.12 / £ - - - - 1.00 / Δ £36,923.12[/strike] - Paid off! Yay!! :)
    ● Home Extension: £48,468.07 / £44,435.42 / Δ £4032.65
    ● Repayment Part: £64,331.11 / £59,877.15 / Δ £4453.96
    Total Mortgage Debt: £149,723.30 / £104,313.57 / Δ £45,409.73
  • absleyabsley Forumite
    1 Post
    Check the interest rate on your fee – I assumed mine (BoS) would be the same as my mortgage and that I’d clear this with my first few overpayments. I’ve just found out that it was at their SVR so was at a higher rate plus it was separate from my mortgage which meant that overpayments didn’t go towards this (they will if you instruct them that this is what you want). Hugely annoying and worth checking!

    Personally I’d pay in advance so you don’t attract any interest on the fee component.
  • JonbvnJonbvn Forumite
    5.6K Posts
    Part of the Furniture 1,000 Posts
    Forumite
    According to my calculations, based on the information your have given, at the end of Sept 2009 (end of the fixed rate), the lowest total (interest + fees) will be on the 6.08% + 399 offer.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
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