Santander online rate 1.09%

getmore4less

getmore4less wrote: »

using the add fees make the payment the same method
for a 2y fix 25y term loan the break even on the £0-£1,499 fee is £130,400.
The 1.44% will cost more than both of them

aaronward wrote: »

Sorry not sure what you mean by the break even?

That is the mortgage size where the end result is the same and it does not matter which deal you pick.

The lower rate covers the added fees over the period with the same payment so you break even.

Smaller mortgage you take the no fee version
Larger mortgage you take the fee based version.

There are other factors like some people want the lower payment what ever the extra cost.

One thing to note is that the break even point is determined by the payment, if planning to overpay that needs a new calculation based on the actual(estimated) payment not the contractual one based on the term.

In the above example the payment was £533.24 which gives a break even around £130,400.

if the plan was to pay £600pm the break even then becomes £131,150


Also note the way amortization calculation work, the reality of daily interest and payments not being exactly on time(weekends) these are approximate numbers and only need more careful consideration if your mortgage is close to the crossover point, most people find they are significantly one side or another.

aaronward

Repayments are around £837 .Looking at overpaying so total repayment a month will be 1k. We want the flexibility of having the option of not over paying in case of emergency. That’s why we have decided on keeping the term at 35 years. I think this is the best deal on the market at the moment and don’t see any need of getting a mortgage advisor.

Apologies with the break even I am still unsure what this actually is. As my loan is going to be for around 292k this is over the break even point.

aaronward

dimbo61 wrote: »

This is a big/huge mortgage and HUGE decision /commitment so why not employ a mortgage broker.
To get that size mortgage you must earn a considerable income and have a good deposit.
Will you be using a solicitor and a RICS surveyor ?

This is a remortgage and Santander are supplying the solicitor and Surveyor, they pay the fees which again is an incentive.