Did I get screwed on mortgage?

PineapplLove · 22 June 2018 at 11:29AM

Hey Guys

I had a confusing conversation with nationwide yesterday and just want to check I got the best deal.

So I was offered the below and I picked the 2 year fixed Fee

I'm a bit confused as to how she came to the conclusion that it's a better deal though...Sort of just trusted her in the end but afraid I got done by a shyster

So this forum wont let me post a picture of the statement but here's the info...

The fee was £999

2 Year fixed (no fee)

2 year fixed (add to loan)

Initial Interest rate

1.99%

1.59%

Initial Monthly payment

£770.11

£771.14 (+£1.40)

Product term TAP

£18,756.71

££18,734.21(-£22.50)

End of deal Balance

£145,015.94

£144,790.86 (-£225.08)

Overall Position

£6,272.64

£6,025.07 (-£247.57)

Mortgage Term TAP

£225,225.90

£221,887.85

Pixie5740 · 22 June 2018 at 12:26PM

PineapplLove wrote: »

Hey Guys

I had a confusing conversation with nationwide yesterday and just want to check I got the best deal.

So I was offered the below and I picked the 2 year fixed Fee

I'm a bit confused as to how she came to the conclusion that it's a better deal though...Sort of just trusted her in the end but afraid I got done by a shyster

So this forum wont let me post a picture of the statement but here's the info...

The fee was £999
2 Year fixed (no fee)

2 year fixed (add to loan)
Initial Interest rate
1.99%

1.59%
Initial Monthly payment
£770.11

£771.14 (+£1.40)
Product term TAP
£18,756.71

££18,734.21(-£22.50)
End of deal Balance
£145,015.94

£144,790.86 (-£225.08)
Overall Position
£6,272.64

£6,025.07 (-£247.57)
Mortgage Term TAP
£225,225.90

£221,887.85

There's not a lot in it but by taking the 2 year fix with the fee you will end up paying £22.50 less than if you took the other product. You will also end up with a smaller mortgage balance i.e. will have paid off more capital, by taking the 2 year fix with the fee. A whole £225.08 more.

Tom99 · 22 June 2018 at 12:26PM

Well you pay an extra £33.60 over the 2 yrs (24x£1.40) and end up owing £225.08 less so you are £191.48 better off.

PineapplLove · 22 June 2018 at 12:29PM

OK thanks all

Op89 · 24 June 2018 at 12:43AM

The overall position also means that even with adding £999 fee to the loan, you will have paid less than the higher no fee interest rate. Nothing wrong with this advice at all.

Did I get screwed on mortgage?

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