MSE Mortgage Calculator

strawberries1

Hi all,

I'm looking at HSBC 60%LTV fixed for 5yrs.
I'm considering adding the fee to the loan in case my application is rejected so I don't loose out on the application fee.

They have a fee saver whereby the booking fee is £0 but the interest rate is .15% higher.

I used the MSE mortgage calc to compare and it appears it's cheaper to add the fee to the loan than to pay it upfront.
ie cost over 5yrs
(fee paid upfront) £44,262 - (fees not paid upfront) £43,713 = £549. That's £450 cheaper. I assume the rates will both fall to the same variable? I always thought it'll be cheaper to pay the fee upfront as long as one is almost certain of getting the application.
Is the calc correct? Please see pasted below.

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

https://www.hsbc.co.uk/1/2/!ut/p/c5/hYxLboMwFADPwgn8MC6wNSTFjmwHUuMCG4uE_FAJkUA08embRbdVNcvRDGrQi1u7XM_tfB1v7ReqUBNahnnMgGCWJbEPVJiNyDY7gDB8-Tq0aUYZiQQAGL4GThICb_LdBx78U3-iCoj96OO7fM6VcOmie1dgpbkvdf2QusVKnfLO7MqEps9BDDNSbByOqEZN9Od5HSD9e4Zx7icrtcryjuJtZ_PHyp7gYLeB7CUoVThYSaf29beKOEz7AqTgIB0zLjCloQXtpotzZ89D96FcLiP1fgA0Mxx_/dl3/d3/L0lDU0lKSmdwcGlRb0tVUmcvb0tvZ0FFSVFoakVDVUlnQUlBSXlGQU1od1VoUzRKUkVBUUFBLzRDMWI5V19OcjBnQ1VneEVtUkNVd2chIS83X0gySThIMDQySEdCODEwQUxWSkxHSlIwMEUzL0xhQ1ZxNzg2MDAwOTIvMzUyNTQ0MDAwODU3L29yZy5hcGFjaGUubXlmYWNlcy5wb3J0bGV0Lk15RmFjZXNHZW5lcmljUG9ydGxldC5WSUVXX0lELyUwaHRzZSUwbW9ydGdhZ2VhcHAlMGxhdW5jaCUwcXVpY2txdW90ZSUwdmlldyUwYXZhaWxhYmxlX3JhdGVzLmpzcA!!/ I can't seem to get the HSBC and MSE images so I've posted the links.

getmore4less

You can't trust the MSE calculator, it is misleading.


paying the fees up front or adding makes a tiny difference as long at you use the money you would have used to pay the fees wisely if you choose to add them.


One option is to add them to the deposit and borrow less, you just end up borrowing the same amount once the fees are added, the timing will give small difference in total cost.

strawberries1

Perhaps I entered the info incorrectly. I've tried it again and it's worked out the other way round which makes sense.
Thank you.