Skipton Mortgage @ 3.13% with £1,000 cash back OR HSBC @ 1.59% with £1,016 Arrangement Fee

CardiffCrank

Most people would just pay based on term, though. So when I use the MSE calculator, I get that this.

Your Skipton mortgage costs you £600pm and leaves you owing £90,548 at the end.

Your HSBC costs you £538 a month (if you pile the fee on top) and you owe £91,164 at the end.

That means going with HSBC saves you £1,488 in mortgage payments. but you owe £616 extra on the mortgage at the end. So HSBC clearly the winner.

What I meant about variable rates is that of course, you do plan to switch to a new fix. But if something went wrong in your life you might be stuck on the lender's variable rate. If there's an obvious difference between their variable rates, that would matter.

FrankRizzo

CardiffCrank said:

Most people would just pay based on term, though. So when I use the MSE calculator, I get that this.

Your Skipton mortgage costs you £600pm and leaves you owing £90,548 at the end.

Your HSBC costs you £538 a month (if you pile the fee on top) and you owe £91,164 at the end.

That means going with HSBC saves you £1,488 in mortgage payments. but you owe £616 extra on the mortgage at the end. So HSBC clearly the winner.

What I meant about variable rates is that of course, you do plan to switch to a new fix. But if something went wrong in your life you might be stuck on the lender's variable rate. If there's an obvious difference between their variable rates, that would matter.

Thanks so much! Appreciated!

FrankRizzo

getmore4less said:

NOTE this post was wrong as it used 2y6m not 2y

The calculation is based on the payments you make.  the default is based on term but many people overpay and that changes the result.

For £100k on a 2year fix over  full term 18years 

After 2 years adjusting for the cash back or fee
Adjust if you are paying the fee up front, take it off the other one)
 

amount	rate	payment	owing
£99,000.00	3.13%	£606.15	£88,157.73
£101,016.00	1.59%	£606.15	£86,571.29

£1,586 better off with HSBC

if you were paying say £1k per month

amount	rate	payment	owing
£99,000.00	3.130%	£1,000.00	£75,884.26
£101,016.00	1.590%	£1,000.00	£74,525.93

Saving drops to £1,358

Thanks so much! Appreciated!

FrankRizzo

getmore4less said:

Just realised there is a significant error in the above
I had an old setting for one of the inputs(2y6m not 2y).

amount	rate	payment	owing
£99,000.00	3.130%	£606.15	£90,394.49
£101,016.00	1.590%	£606.15	£89,506.31

£888 better with HSBC

amount	rate	payment	owing
£99,000.00	3.130%	£1,000.00	£80,653.04
£101,016.00	1.590%	£1,000.00	£79,908.46

£744 better with HSBC

Thanks so much! Appreciated!