Mortgage rate or final amount

sammyj84

Hi 
I am a first time buyer but i can't decide on if to go with Nationwide or NatWest (currently bank with NatWest).
Do i go for the one with the lower 5 year final amount including fees and cashback or the one with slightly lower interest rate? 
There's only £150 difference and both are affordable. 
Any advice at all

getmore4less

Put up the details and your calculation.

Most calculators get the numbers wrong.

sammyj84

Both fixed for 5 years, with fees added. 5 year total includes fees and cashback. 

Nationwide 1.39%, £423.67 pm, £500 cashback 5 year total £25,240 (this amount was given to me i did not do it on a calculator) 

Natwest 1.29% £426.52 pm, £250 cashback 5 year total £25,341.

getmore4less

Amount borrowed and the fees.
edit: and full term to check the payments

Something does not look right with those payments and rates unless there is a big difference in fees.
With those 2 lenders they tend to be around £1k 

Could be nationwide has a no fee 1.39% rate that would fit but the only one I can see @ 1.39% is FTB £999 

Another explanation may be the fees were not added to the Nationwide That would make it around £73k  over 16 years with both having £1k fee  but only added to teh lower rate to calculate the payment

those totals both  don't match the payment *60

sammyj84

Both 10 year mortgages fixed for 5 years. nationwide fees are £1019.
Natwest fees are £1025. Both fees added. 
I've added a product selection that was sent to me

getmore4less

There was something wrong
You wrote down the wrong amount for nationwide its £428.67 not £423.67.

if over 10years full term then borrowing  £47k .
you need to be looking at the no fee options as well it is close to the breakeven amounts.

If you plan to overpay then going no fee is likely to be the better option over the 5 years.

The issue is those don't take into account the amount left after 5 years you are looking at the wrong data if you want the cheapest.

these numbers are a little different to what's on the sheet.
take your two examples over 5 years adding the fees they say there is a £180 difference at the end if you make the payments the same

amount	rate	payment	owing
£48,019.00	1.39%	£428.84	£24,843.01
£48,025.00	1.29%	£428.84	£24,659.03

.
if we add in the nationwide no fee that's better than the 1.39% with fee once you make the payments equal, does that have the same cashback?

amount	rate	payment	owing
£48,019.00	1.39%	£430.33	£24,750.48
£48,025.00	1.29%	£430.33	£24,566.73
£47,020.00	1.89%	£430.33	£24,619.15

Chuck in the Skipton and Barclays no fee and they are even better by most of the £500 cashback do they have any?.

amount	rate	payment	owing
£48,019.00	1.39%	£430.33	£24,750.48
£48,025.00	1.29%	£430.33	£24,566.73
£47,020.00	1.89%	£430.33	£24,619.15
£47,006.00	1.64%	£430.33	£24,130.96
£47,035.00	1.63%	£430.33	£24,143.64

I think there is the Barclays 1.49% £749 7Y fix  a touch more over 5 years but a good rate over 7years.

if that no fee nationwide has the cashback that seems to be looking good and definitely better if planning to overpay.

I have just written all that and see  the natwest is 1.28%
the payments on those 2 are based on adding 999 and 995 so I have done them again.  
(no idea what those other fees are)

amount	rate	payment	owing
£47,999.00	1.39%	£428.67	£24,832.67
£47,995.00	1.28%	£428.67	£24,619.12

There is not a lot of difference best lender for a history of good no fee follow on's is worth considering  unless you are planning to pay it off in 5y.

sammyj84

Wow, I'm mind blown an so confused now 😐
We probably won't pay it all off within the 5 years but will over pay as and when we can within what the lender allows. 

Nationwide is £500 cashback for fee an no fee options and NatWest is £250. 

getmore4less

I would have to go through that again but if that 1.89% nationwide comes with £500 cashback good chance it's going to be the one to use as a benchmark for something better.
It's just better than nationwide 1.39% with £999 fee by ~£130 

Once overpayments factored in it will even better.

If this is a broker get them to check the option they recommend.

Carmassi

Everything depends on your income and where do you live

sammyj84

getmore4less said:

I would have to go through that again but if that 1.89% nationwide comes with £500 cashback good chance it's going to be the one to use as a benchmark for something better.
It's just better than nationwide 1.39% with £999 fee by ~£130 

Once overpayments factored in it will even better.

If this is a broker get them to check the option they recommend.

The broker recommended the  Nationwide with the fee added, said they have to recommend the one with lowest total after the 5 years. But NatWest i went to them directly as i bank with them.

So financially its not much difference so think i just need to decide on which bank lol

getmore4less

If that's what they have to recommend then the system is broken.

The one that leaves you with the smaller debt for the same money input is clearly a better option unless there are reasons you want something different like a lower payment

If they don't/won't factor in overpayments you might as well ditch them they can't help you.