How do you decide whether to pay a fee or not?

getmore4less

MFWannabe said:

IAMIAM said:

Thrugelmir and getmore4less are exactly the type of keyboard warriors I cannot bare. 

Really? 

I’ve seen several posts including one to yourself on another thread that getmore4less has gone into great detail for you with cost comparisons; remember this one?: 
https://forums.moneysavingexpert.com/discussion/6235799/are-you-fixing-for-2-or-5-years#latest

no doubt I’m now on your list of people you cannot bear 

Thanks,  was on my phone, not so easy to search but  thought I had done some number crunch before 

Looking back at that thread pretty much has the answer to this question 

Dealing with the simple case of 2 products with a rate and fee difference.

Taking £150k  30 years 60%-75% LTV bracket  at that old favourite Nationwide.
From the 18 March product sheet. picking house purchase new borrowers

Add the fees make the payment the same and see what's left at end of fix.  
rate and fee option for...
 
2y fix  1.44% £999, 1.94% £0

amount	rate	payment	owing
£150,999.00	1.44%	£549.94	£142,026.02
£150,000.00	1.94%	£549.94	£142,482.63

Breakeven mortgage on 30 years for that 0.5% margin an £999 fee over 2 years is around £103k 


5y fix 1.64% £999, 1.99% £0

amount	rate	payment	owing
£150,999.00	1.64%	£553.68	£129,297.36
£150,000.00	1.99%	£553.68	£130,779.80

Breakeven mortgage on 30 years for that 0.35% margin an £999 fee over 5years is around £63k 

why not lets do 10y fix as well 2.49% £999, 2.59% £0

amount	rate	payment	owing
£150,999.00	2.49%	£599.72	£112,019.30
£150,000.00	2.59%	£599.72	£112,245.18

Breakeven mortgage on 30 years for that 0.1% margin and £999 fee over 10years is around £127k 

csgohan4

Sadly OP probably hasn't seen your post as they have probably ignored you and why asking again. You reap what you sow