Fees or No Fees?

FirstTimer4Me

Currently with Nat West, our 2 year deal finishes November, new interest rate offered with no fees:

2yrs = 2.69%
5yrs = 2.97%

Based on above interest rates, slight increse on our current monthly mortgage payments

Looking at comparison websites, lower interest rates offered but with fees.

Even with fees and lower interest rates, monthly payments quoted are lower than that offered by Nat West under the interest rates above

As we're currently with NW, no credit check required.

We're novices in the financial markets, any advice would be highly appreciated.

Thrugelmir

FirstTimer4Me wrote: »

Even with fees and lower interest rates, monthly payments quoted are lower than that offered by Nat West under the interest rates above

Have you factored in cost of remortgaging. Mortgage redemption fee, valuation and legal fees for example.

ACG

I wont be doing the sums myself as I have some work to do but there is not enough information to say which is the better deal.

The size of mortgage.
How long the deal is for (2,3 or 5 years usually).
How much the fee is.
Any cash back.
How long the mortgage term is.

getmore4less

Use a mortgage calculator

Add the difference in upfront costs, make the payment the same and see what's left at the end of the fixed term.

The one that pays off more of your mortgage is cheaper.

FirstTimer4Me

Thanks for all the replies so far.

ACG wrote: »

The size of mortgage: £44000 left
How long the deal is for (2,3 or 5 years usually): 2yrs
How much the fee is:£1000
Any cash back: No
How long the mortgage term is: 10yrs left on our mortgage

getmore4less

£44k 2y fix £1k fee with a no fee 2.69% on the table.

Fee rate needs to be under 1.55%
(based on interest only, less for a 10y repayment)

Do not use the MSE calculators they get the wrong answers.


Edit:
Done the full calc. 1.43%

FirstTimer4Me

getmore4less wrote: »

£44k 2y fix £1k fee with a no fee 2.69% on the table.

Fee rate needs to be under 1.55%
(based on interest only, less for a 10y repayment)

Do not use the MSE calculators they get the wrong answers.


Edit:
Done the full calc. 1.43%

Thank you get, apologies for my ignorance, are you suggesting I stay with NW and take the 2.69%?

ACG

I would be surprised if on a £44k mortgage it is worthwhile paying a £1k fee.

FirstTimer4Me

ACG wrote: »

I would be surprised if on a £44k mortgage it is worthwhile paying a £1k fee.

Thank you ACG, it looks like I should take the offer from NW

getmore4less

There should be better rates with no fees.

getmore4less

FirstTimer4Me wrote: »

Thank you get, apologies for my ignorance, are you suggesting I stay with NW and take the 2.69%?

I am saying if you want to leave to a different 2y fix with 1k fees you need a rate better than 1.43.