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Mortgage offer advice

Hi

We've had our house offer accepted and we're now looking at the two mortgage options London and Country have recommended for a two-year fixed rate.

Behind door number one is Bank of Ireland at 2.83% with no product fees, a free basic survey and £400 cashback.

Option two is HSBC with 1.99%, then £1700 in fees.

I get the feeling BoI have thrown the £400 cashback in to gazzump HSBC, as L&C advise that BoI will be £400 cheaper over the two years.

Is it as clear-cut a decision as going for the £400 cheaper one, or should we be gunning for the lower interest (we'd budgeted for product fees anyway)?

Thanks
Ben

Comments

  • Grenage
    Grenage Posts: 3,222 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If the extra interest over two years is greater than £2100, I'd take HSBC's option. If it was the same, I'd probably take HSBCs offer if I thought they'd be more likely to have a mortgage deal I'd want in two years time.
  • Debtslayer
    Debtslayer Posts: 447 Forumite
    What about other benefits?
    Do either allow overpayments ? Repayment holidays?
    What rate do they revert to after initial 2 year fix?
    Current Mortgage 01.10.17 £113,513.88
    MFW Start Mortgage: £114,794.64
    Current MED: 2036:eek: Target MED: 2026 ;)
    Overpayment Target for remainder of 2017: £2,000
    Mortgage overpayment savings: £684.80
    MFW No 124 :money:
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