2 year or 5 year deal?

getmore4less

 And paying the fee upfront rather than tacking onto the mortgage is recommended when ever possible.

That's actually nonsense  because done properly there is no difference(pennies).

Paying a fee up front is just  an early overpayment, often better to just borrow a bit less and add the fee in case the deal does not happen as fees upfront are often not refundable..

getmore4less

The difference in payment does not tell you the difference in cost.

A lower rate pays of more capital even with the lower payment


I was offered 5 years at 0.99 with 749 fee monthly payments of 1,088 or
2 years at 0.84 with 749 fee monthly payments 1,075

depending how you rounded the payments the range for borrowing  is ~£182k-£211k  for £0.50

using the closest to those payments 

16y 4m term on £196,824. 

rate	fees	payment
0.99%	£0.00	£1,087.99
0.84%	£0.00	£1,075.02

after 2 years

amount	rate	payment	owing
£196,824.00	0.99%	£1,087.99	£174,397.21
£196,824.00	0.84%	£1,075.02	£174,148.20

paid (£12.97*24) £311 less less and owe  £249 less total £560

make it like for like poay the same

amount	rate	payment	owing	interest
£196,824.00	0.99%	£1,087.99	£174,397.21	£3,685.07
£196,824.00	0.84%	£1,087.99	£173,834.25	£3,122.12

difference after 2 years  £563
 

Dandytf

Antman27 said:

I'm no expert but The Guardian did report just last week that BoE may consider increasing interest rates if inflation remains high next year. I recently went for a five year because I'm planning to live there long-term and don't think the rates will substantially improve (if at all) over this period.     

and more recently FT.