mortgage fee calculators?

hotcookie101

Hi,
Just trying to arrange my remortage for £115,500, over 23 years, house value approx 180k. I have an appointment with HSBC on friday, who seem to be the best deals available, but am a bit confused over what is the best value with regards to fees etc...
2 year fixed 4.79% £1299 fee (rate matcher)
5 year fixed 5.73% £499 fee
5 year fixed 5.39% £999 fee
(slightly different) lifetime tracker BR+.48% £599 fee
salary is £45k
Thanks to any maths bods who can help!

homer_j_3

You need to look at total cost overall.

For example, your 2yr rate matcher deal would have to be £54 a month cheaper than a no fee product for it to be overall cheaper than this. You would need to consider the rate that it would switch to after this also, however, as there is no control over this, you cannot guarantee that the prevailing rate once the fixed has ended will be the same or most competitive after that point.

You seem to have been given the outline of the deals and I am sure that if you took these to proper whole of market broker, they would be able to tell you if these could be beaten.

hotcookie101

a broker offered me a 3 year fixed at 5.89 with 1100 fees and that (he said) was the best available for me but the hsbc ones look better to me (they do a 3 year fixed with lower interest and 499 fees), so I dont understand how the broker one would be better?

hotcookie101

is that right? the 2 year works out nearly 10 times cheaper over a 1 year period? or is my a level maths letting me down again?

owitemisermusa

IMO, I think it's easier to compare like for like.

It's not straightforward comparing the 2 year and 5 year fixes as you dunno what rate you'll be on after the 2 years are up.

With the 5 year fixes, the 5.39 appears to be cheaper despite the higher fee.

Another question is: are you adding the fees to the loan?

Tiddler_2

Stoopish wrote: »

2 year £1,299 fee = £691.25 p/m. True cost is £9,594 for period
5 year £499 fee = £753.99 p/m True cost is £45,738.40 for period
[FONT=&quot]5 year £999 fee = £730.97 p/m True cost is £44,857.20 for period[/FONT]

[FONT=&quot]Hope that helps with your decision hotcookie.[/FONT]

The figures are not correct for the true cost of the 2 year deal. It is actually £17888.93. (Which equates to £8944 p.a, as opposed to the £8971 p.a of the 5.39% deal - however what will rates be in 2 years time?)