Which of these mortgage options would you go for?

Loopy28

I can port the balance on my existing mortgage with Santander of 49k at a rate of 3.39% (4 years left on that rate) and take the additional mortgage amount of 107k on a new product, which will either be 4.34% (2 Yr fix) or 4.99 (5 yr fix) This has no product fee, a free valuation and £250 cash back.

Alternatively I can switch mortgage provider, pay a 3k ERC, meaning I will need a mortgage for 3k higher but can get a 5 year fix at 3.99% with £995 fee. (I am 90% LTV)

Your thoughts would be gratefully received? Thanks

dimbo61

So to move lenders you would have to pay out £3,000 ERC plus £995 and lose £250 plus other costs to change lenders.
Then you would have the whole £107+3+49 at 3.99%
Or stay with Santander and have £49,000 at 3.39% :-) and £107,000 at 4.99% ( five year fix).
If you used "whatsthecost" and put all the figures in I am willing to bet you £10 that staying with Santander works out cheaper.

Thrugelmir

How will you pay the ERC and product fees. Borrow the money?

Loopy28

The ERC would come out of the equity in the property I am selling meaning 3k less deposit on the house I am buying.

I would plan on adding the product fee to the loan, which is an option.

Looking at the figures, both come out at a repayment of about £800 a month.

pjread

HSBC, 3.94% no fee 5yr fix to save yourself £995 and a tiny bit on rate?