Add 999 fee to 17 year mortgage switch

Dandytf

Is adding 999 fee to almost 17 year mortgage term switch from existing fix ending a concern at all.
I only ask as I want to keep the option of moving, next year or two to rented flat if one becomes available.
42k
16year 8months term
Considering 2 yr tracker 1.94 -base +1.19 -999 fee to be added -241.85 ('I'll pay 275)
Or should I forgot and go fee free 2.34 base+1.59 No fee -249.73 (I'll pay 275)
Any thoughts mser's before I select from 2nd Feb
Existing Nationwide switch

ACG

On a £42k Mortgage are you sure it is best to take a product with a £999 fee?

Dandytf

ACG wrote: »

On a £42k Mortgage are you sure it is best to take a product with a £999 fee?

Thanks I thought the non fee option I run the risk of higher rate if base rates rise multiple times over 2 years.
+.4 of a difference-no idea what that could mean cost wise, though I did run rate rise calculator upto 2.5% increase over current rate and think the temptation is the comfortable room with the lower fee payable rate.
I could also consider paying the fee much.quicker though not sure if I will within 2 years.

Dandytf

No fee@ 2.34 only 1% increase in base rate takes upto 275 payment.
I've time to think over next few weeks.

getmore4less

0.4% on £42k 2 years

Max saving £336.

If they are both trackers that won't change with rate rises,

Dandytf

Saving almost 2K with fee option (though rates will no doubt rise)
+ I could add to 275 payment maybe 10.00 each time every few months building up current very small overpayment reserve and reduce term by a few years if for any reason I decide to stay.
I'm going with the fee option if rates stay as they are until Feb'
Thanks@ACG appreciate your advice

Dandytf

getmore4less wrote: »

0.4% on £42k 2 years

Max saving £336.

If they are both trackers that won't change with rate rises,

Thanks appreciated, I've decided to select Fee option as detailed in later post.
I thought if and when rate rises that could potentially wipe away any possible savings to be made.

getmore4less

Why throw away over £600

How have you worked out you save over £2k

Dandytf

getmore4less wrote: »

Why throw away over £600

How have you worked out you save over £2k

Throw away approx 600- I thought it coul be better to absorb interest rate rise from lower rate fee paying tracker.
I'm obviously not grasping the positive's of no fee when I can indentify how much faster my 275 payments get reached or exceeded with rate rises.
The total amount re payment is considerably less with fee paying rate.
I have intentionally missed fixed rates only to avoid erc's if I move though only 1k year 1 and 800 year two (possibly don't have numbers in front iof me)

getmore4less

this is what I get

Mortgage £42,000.00
Full term 16 8
test period 2 0

option rate fees payment add fees
1 1.94% £999.00 £245.94 £251.79
2 2.34% £0.00 £253.81 £253.81


by the time you add the fee £2pm difference in payment

amnblog

Dandy

You are totally running off in the wrong direction on the way this works.

The higher rate, no fee product, looks favourite on your outstanding balance on the face of it.

The comparison between the two rates is unaffected by underlying base rates.

You are paying 0.4% more on £42,000 to save a £999 fee.

That's around £168 a year over two years.

Don't be confused by the monthly payments which are 2/3rds repayment of capital 1/3rd interest.

If you are still confused have Nationwide explain it to you and recommend a rate.