comparing mortgages please help

scoobylou_3

Looking to remortgage and I'm hopeless at maths. Could anyone tell me if 4.56% fixed over 5 yrs with £395 fees [cheshire b.s.] is better than 4.70% with no fees [portman b.s.]The mortgage is for £34000 and we have 10 yrs left as it stand [with Britannia at present] Thanks

Scott

I'd go with the Portman account, you won't make enough back on the reduction in interest to offset to the fee at the start.

You'd save around £47 a year (in my head, might be slightly out), reducing as your capital did, if you went with the lower rate, making a grand saving of £235 against a fee of £395, a loss of £160ish! Go with the slightly higher rate.

I'd check out any difference in sealing fees, early repayment charges and take that into consideration against your plans, though.

In purely setup costs versus interest paid, you'd benefit from the Portman product.

scoobylou_3

Thanks scott. I suspected that might be so but am never sure how to work it out.

payless

Remember some lenders also charge on an annual basis, which on a short term repayment mtg can have a greater negative effect ( not sure if Scott already taken that into account)

on what is a smaller mortgage one really needs to be careful to take into account all the fees involved