Initial rate or APRC

FTB_Help

Hi all

Im looking through and comparing rates for my mortgage, and just wanted to reach out on what is vest when looking at rates.

I've found a few where the initial rate (1.75%) fixed for 5 yrs is the best but the APRC is 3.4%.

And others where initial 5 yrs is 1.89% and the APRC is 2.8%.

Which would you recommend? To go for the initial low rates or to go for a lower APRC?

Thanks

amnblog

The APRC is not a sensible route for comparison unless you intend to take this product and never review your mortgage again while you have it.

FTB_Help

Is APRC essentially "useless" then?

The inital 5 yr 1.75% is with platform, they have a high svr 4.34% hence a higher aprc of 3.4%.

Not heard of platform before.

The 1.89% is with santander also tsb they both have a lower srv, hence a lower aprc. The actual monthly mortgage payments is £8 / month more with santander /tsb, both of which I've heard of and seem to rate ok as lenders. Am i over thinking this, and should just go with the lower 5yr inital rate and then juat remortgage in 5yrs time?

FTB_Help

Should also mention after the 5yrs, platform will cost around £80 more each month

amnblog

You should get a Mortgage Broker to recommended the correct product for you.

tigsly

The 'follow on rate' is not 'set' it can change.. you are best to take the 'lower rate' and look around after the 'deal' has finished - or - if your close to the end - try to overpay so when the fixed rate ends you only have a tiny bit left to play.