Which Mortgage would you go with?

HenryHippo · 28 October 2015 at 12:10PM

Buying a £239,950 property with an £85,000 deposit and a £154,950 loan

Using the online comparison tool the best deal I got was West Brom 1.19% fixed for 28 months. Monthly Payments £597 for first 28 months. There is a £1,309 set up cost however

My broker found me Leeds 1.75% fixed for 2 years. Monthly Payments £639 for first 24 months. Set up fee only £199 and added to the mortgage

Which would you go with? I am leaning towards the latter

libf · 28 October 2015 at 12:46PM

http://www.moneysavingexpert.com/mortgages/compare-mortgage-rates

HenryHippo · 28 October 2015 at 1:12PM

libf wrote: »

http://www.moneysavingexpert.com/mortgages/compare-mortgage-rates

Thanks.

Can anyone explain what I am doing wrong please?

Leeds: 1.89%. £639 monthly repayments, £199 set up cost. Total over 2 years = £639 x 24 + £199 = £15,535

West Brom: 1.19%. £597 monthly repayments, £1,309 set up cost. Total over 2 years = £15,637

So Leeds wins by £102 over 2 years.

However when I put the above into the calculator Leeds has a 2 year cost of £15,590 and West Brom has a 2 year cost of £14,464 = £1,126 win to West Brom

libf · 28 October 2015 at 1:17PM

Probably something to do with adding the £199 to the loan and paying interest on it. Probably easier to just pay the £199 up-front, in terms of comparing.