Advice on remortgaging with new fixed deal

MattEng

Hi all,
Can anyone please share the calculations you use when looking to remortgage to ensure your getting the best deal.
(My mortgage is 50% LTV £60,000 over 10 years remaining)
I've just been looking at what my provider will offer me at the end of my fixed term and it is the following:

2 years fixed at 1.29% then SVR (4.99%) + £999 fee. Equivalent to roughly 2.2% over 2 years.
2 years fixed at 1.69% then SVR (4.99%) No fee.
3 years fixed at 1.55% then SVR (4.99%) + £999 fee. Equivalent to roughly 2.2% over 3 years.
5 years fixed at 1.59% then Privilege rate (4.74%) + £999 fee. Equivalent to roughly 2.0% over 5 years.
10 years fixed at 2.2% + £999 fee. Equivalent to 2.47% over 10 years.
10 years fixed at 2.5%
Best buy according to MSE total cost assessment:
Hanley Economic 2 years fixed at 2.19% then SVR (5.44%) + £35 fee.

If my above calculations are correct then my best option, at least for the next 2 years would be to go for the 2 year fixed at 1.59% with no fees.
Would anyone suggest a different approach or even a non fixed term?
Any help would be appreciated, Thank you.
Matt

getmore4less

To do like for likes on the same fixed terms just add the fees and make the payments the same and see what's left at end of the fixed term.

if you plan to overpay use that payment.

Beware of using MSE calculators they have flaws and can be misleading.

Some like the strategy that rates are reasonably low and with a 10y fix 10y term they have the job done with a fixed payment, but that does cost if rates don't move against a string of no fee 2y

£60k 10y 2.50% you pay £7,875 interest
£60k 10y 1.69% you pay £5,255 interest

Also be careful of your equivalent rates.

10 years fixed at 2.2% + £999 fee. Equivalent to 2.47% over 10 years.
10 years fixed at 2.5%

The no fee is cheaper over the full term.

MattEng

getmore4less wrote: »

Also be careful of your equivalent rates.

The no fee is cheaper over the full term.

Yes, I Didn't adjust the monthly payment when trying to work out the equivalent interest rate. the no fee is £8 a month more so £960 over the 10 years. It would be £39 cheaper.

ec9wrr

Agree with calcs above. But use a broker. You can get free free brokers on topcashback Habito for example. If your deal is better than broker then go with yours. Worth a shot. On a £60k mortgage you could get £55 from Habito even if you end up with the same mortgage you’ve already calculated. (Other brokers are available!)

getmore4less

MattEng wrote: »

Yes, I Didn't adjust the monthly payment when trying to work out the equivalent interest rate. the no fee is £8 a month more so £960 over the 10 years. It would be £39 cheaper.

You can't just use the difference in payments

add the fees make the payment the same

£60,999 2.2% £565 left £235
£60,000 2.5% £565 left £84

The no fee is closer to £150 cheaper