help with basic question

Chris££

Im looking at remortgaging and have been looking online. When comparing two 3yr fixed rate deals with 70% loan

1) 2.29% £999 fees
2) 2.59% with no fees

when working out the total cost over the 3 years option 2 is cheaper? (by £400) so is there any reasons/advantages i should consider option 1 or am i missing something?

Thanks

dimbo61

Follow on rate ie SVR and exit fee when moving lenders

Chris££

Well they both go to 3.99 & same exit deal. The two deals are from the same bank. So which option is best?

Din85

The second one... Your not missing anything, if you have a smaller mortgage the higher rate with no fees works out cheaper.

Same for us, we have recently bought our first house using help to buy garuntee with the Halifax ( sounds similar to yours)

Option one was 5.29% and £999 setup.
Option two was 5.59% and no fees, both are 2 year fixes.

Our mortgage was for £118750, so it worked out £200.00 cheaper to go with the higher rate and no fee.

Of course option one would be cheaper if you where borrowing more.