New flat mortgage - high monthly payment Vs low monthly payment

Helpforburton

Hello, I am in the process of buying a new flat and I am unsure on what to do for my mortgage.

I have 2 options...

1. Retain my existing mortgage and borrow the additional money required for the new flat from the same lender at their current rate (6.1% fixed for 3 years).

benefits - easy to organise, small arrangement fee, no early repayment charge and 3 years worth of set payments.

drawbacks - high monthly payments such that i need to offset monthly payments with a monthly payment from another vehicle i.e. loan or retaining some money from the sale of current property.

2. Arrange a new mortgage, which I have one agreed in principle. The rate is 4.99% fixed for 2 years but there is a 3.25% arrangement fee which works out to be around £10k.

benefits - lower monthly payments
drawbacks - high arrangment fee, i would have to pay an early repayment charge (approx. £5k) for current mortgage and i only have set payments for 2 years.

To summarise, to retain my existing mortgage will in the long run cost less than the lower rate mortgage (early repayment charges, arrangement fees etc) but the lower rate mortgage will provide me with lower monthly repayments which would give me a bit of breathing space on my monthly budget. The difference in monthly repayments would not equal the additional set up fees required for the 4.99% mortgage over the 2 year period.

I would greatly appreciate any advice or recommendations on the above as I am stumped as to which direction I should take.