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Mortgage, question...
RedfordML
Posts: 917 Forumite
Both 80%;
Why do banks offer a lower rate, with a product fee, 1k & a higher rate with no product fee.
This would be over 5 years. In this time the money saved on the lower rate would be a lot more than a 1k so why would anyone choose the higher rate, no product fee?
Why do banks offer a lower rate, with a product fee, 1k & a higher rate with no product fee.
This would be over 5 years. In this time the money saved on the lower rate would be a lot more than a 1k so why would anyone choose the higher rate, no product fee?
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Comments
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Smaller mortgages it works out better to pay a higher rate and no fee. Larger mortgages the opposite is true.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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To attract two distinctly different types of borrowers.0
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We are split.
Can see pro and cons of both.
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Do the sums...
Will it cost you approx £200 a year more to go with the higher rate? If its borderline I would say its personal preference. If its considerably more or less that should help you decide.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
One product to do business with. One product to enchant 'rate tarts' on the interweb.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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