Mortgage deals pay product fee or not

woody2234

On a 2 year fixed rate mortgage, is it better to pay £999 or £0 for a new deal.

for example

term 2 Year initial rate 1.69% base rate n/a monthly cost £279.46 product fee £999.00

term 2 Year initial rate 1.89% base rate n/a monthly cost £283.54 product fee £0.00 (about £96 more over 2 years)

[Deleted User]

https://www.moneysavingexpert.com/mortgages/compare-mortgage-rates

Martin (as always) has you covered.

woody2234

Thanks for reply, Ive been on the calculator link, seems I will pay more over 2 years with a product fee £999 deal so I will try and get a product fee £0 deal.

getmore4less

Depends on the size of the mortgage.

Be careful using the MSC calculator it gets some answers wrong.

minimike2

The answer surely has already been stated within the original question, on this occasion?

nick74

I offer a similar deal if anyone's interested?

Pay me £999 now and I guarantee that I'll give you £96 back, split over 24 monthly instalments

Takmon

woody2234 wrote: »

On a 2 year fixed rate mortgage, is it better to pay £999 or £0 for a new deal.

for example

term 2 Year initial rate 1.69% base rate n/a monthly cost £279.46 product fee £999.00

term 2 Year initial rate 1.89% base rate n/a monthly cost £283.54 product fee £0.00 (about £96 more over 2 years)

So your seriously asking if you should pay £999 or £96 :rotfl:

getmore4less

term 2 Year initial rate 1.69% base rate n/a monthly cost £279.46 product fee £999.00

term 2 Year initial rate 1.89% base rate n/a monthly cost £283.54 product fee £0.00 (about £96 more over 2 years)

on those rates and payment mortgage is somewhere around
15y 0m £44 400 or
15y 1m £44,620

You will owe around £70 less on the lower rate after 2 years so the real difference is a bit more

adding the fee and making the payment same the no fee is around £860 cheaper

The breakeven mortgage over 2y (15y full term) with those rate is around £269k


With such a small mortgage you need a big rate differential to make up a £1k fee eg. 50k needs around 1% £100k 0.5%

woody2234

Thanks for replies, my mortgage is about 45k so I think the £999 fee is more for the people with mortgages of 2 or 3 or 4 or 5 million.

Thrugelmir

woody2234 wrote: »

Thanks for replies, my mortgage is about 45k so I think the £999 fee is more for the people with mortgages of 2 or 3 or 4 or 5 million.

What options has your existing lender offered you?

FIRSTTIMER

Similar SITU

First Direct 1.89 £490 fee
HSBC 1.69 £999 Fee