Natwest Mortgage Decisions....

downs523

Good evening

i am after some mortgage advice, i know i should book an appointment with the bank but just looking for peoples opinions first. I can now remortgage with natwest and i have logged into my online mortgage account and viewed the available products. I want to have a 5 yr fixed deal and there are two which are listed below. One has a £995 fee the other doesn't. If picked, the fee will have to be added to the mortgage. We need to stay with Natwest due to no further credit checks and full application.

Does anyone know which is the better option?

outstanding mortgage £181,884.65
term remaining 28 years, 2 months

option 1

5 year fixed rate
monthly payment £771.85
initial rate 2.73%
initial rate expiry 30/11/2021
rate reverts to 3.75%
overall cost for comparison 3.5% APRC
product fee £995

option 2

5 year fixed rate
monthly payment £815.29
initial rate 3.18%
initial rate expiry 30/11/2021
rate reverts to 3.75%
overall cost for comparison 3.6% APRC
product fee £0

chromac

Option 1 is the better option based purely on the facts above.

ap1985

I would personally go for option 1.

Westminster

My back of a fag packet calculation shows option 1 costing £1611.40 less over the 5 year period.

Reason123

I have similar very circumstances and will be going for option 1.

kingstreet

downs523 wrote: »

I can now remortgage with natwest

For the benefit of future readers, you are looking for a customer retention product from your existing lender, not a remortgage.

The latter is a new mortgage from a new lender to repay the old one and would be from a completely different product range.