Re-mortgage help please...

shopping_addict

Hi,
This is probably a stupid question so please be kind as I have no clue when it comes to things like this!

My mortgage deal with the Halifax has ended and im now on their 3.99% rate so im looking to switch to a better deal if possible.

Im currently looking at these 2 deals from tesco:

1) 2 year tracker initial 1.29%, reverts to 4.24% £995 fees
2) 2 year tracker initial 1.75%, reverts to 4.24% £0 fee

Monthly payments for product 1) are £14 less per month than product 2).....so over the 2 years thats £336 less. So why would anybody choose product 1) with a £995 fee? Am i looking at this too simply?

Any advice would be greatly appreciated!

amnblog

Because, not everyone has a £36,500 mortgage balance.

If you owed £200,000 it would make sense to take the rate with the fee.

shopping_addict

Oh a £36,500 mortgage balance would be lovely I agree.

Thanks for your input