Mortgage newdeal

Hello :)

I have seen conflicting advice on this matter and nothing seems to mirror my current situation.  My current deal ends at the end of March and I am seeking a new deal and also happy to stay with my current lender. 

House value = approx £520k 
Mortgage left = 100k
Current deal has just under 19 years left with monthly payment of £636 pm on 2.9%

I currently pay £820 per month as I wish to clear it quicker and am well within the 10% overpay.  I am in a position to pay more and as my deal it up for renewal I have been looking (maths never my strong point!).

I am being offered a 2 year rate (my choice as unsure if I am moving in less than the other 5 years) at 1.28% with a £995 product fee or a 2 year rate with no product fee at 1.66%.

It is my intention to clear my mortgage within 10 years to will pay more than my current £820pm to say 1k pm.

My question is am I better off paying the product fee and adding it to the loan for a 1.28% or paying no fee for 1.66%.

As I said earlier mathematics was never my strongest suit  :/  

Can someone give me guide for dummies please  :D

Many thanks in advance.


  • Every time I've taken out a new deal the advisor has worked out which is better for me. Sorry, can't do the maths!
  • caeler
    caeler Posts: 2,605
    Mortgage-free Glee! Photogenic Name Dropper First Post
    edited 8 February 2021 at 7:15PM
    I’d start by working out the difference in payments over the 2 year initial term to see if that covers the product fee. 
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