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Choosing between two mortgages
Graeme7777
Posts: 255 Forumite
Hi,
I have a choice between two mortgages and I was hoping that someone could please tell me which is the cheaper option.
Both are repayment mortgages for around £250k, fixed for around 5 years and I will re-mortgage after the end of the fixed period so the SVR to which they will revert is not relevant to my choice.
The details are:
Mortgage 1 - 1.74% pa fixed for 62 months. Upfront fees of £900 (added to the loan) and £129 payable by bank card.
Mortgage 2 - 1.94% pa fixed for 61 months. Exit fee at end of fixed period of £225
Can someone please suggest which is, on the facts I've given, the cheaper option (and why).
Thanks!
I have a choice between two mortgages and I was hoping that someone could please tell me which is the cheaper option.
Both are repayment mortgages for around £250k, fixed for around 5 years and I will re-mortgage after the end of the fixed period so the SVR to which they will revert is not relevant to my choice.
The details are:
Mortgage 1 - 1.74% pa fixed for 62 months. Upfront fees of £900 (added to the loan) and £129 payable by bank card.
Mortgage 2 - 1.94% pa fixed for 61 months. Exit fee at end of fixed period of £225
Can someone please suggest which is, on the facts I've given, the cheaper option (and why).
Thanks!
0
Comments
-
Mortgage 1 would be cheaper over the 5 years and also leave a lower remaining debt after the 5 years. Have a look over the MSE mortgage rate calculator which will help you with a basic calculation like this.I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Graeme7777 wrote: »I will re-mortgage after the end of the fixed period so the SVR to which they will revert is not relevant to my choice.
Perhaps not. However remortgaging to a new lender isn't a cost free option. Remaining with your choosen existing lender won't incur the same level of charges if any at all.0
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