Higher Interest no fee vs lower interest hight fee
Discussion
I have massively confused myself looking at mortgage and need some help. (can tell its been a long day can't even spell high)
For example on a 2 year fixed deal.
Is it better to pay a high upfront cost with a lower interest rate or a higher interest rate with no fee.
Should I be looking at the total payment including product fee or just interest rates ?
For example on a 2 year fixed deal.
Is it better to pay a high upfront cost with a lower interest rate or a higher interest rate with no fee.
Should I be looking at the total payment including product fee or just interest rates ?
Edited by Jordan210 on Monday 6th March 21:49
Scawie said:
Moneysaving Expert's comparison tool gives you the average cost per year over the fix period with any fees and cashback taken into consideration. Gives you a pretty straight comparison.
Thats what iv been looking at. But now not sure whats better.As to me it seams like swings and roundabouts. But I could be missing the point
Jordan210 said:
Thats what iv been looking at. But now not sure whats better.
As to me it seams like swings and roundabouts. But I could be missing the point
The higher the balance the more likely that a product with the lowest possible rate with a fee will work out cheaper.As to me it seams like swings and roundabouts. But I could be missing the point
A low balance (under £100k for example) will out yield that having a higher rate and low/no fees work out cheaper.
There is a natural tipping point. Add up all fees plus x24 monthly payments......the total will tell you which is cheapest.
But naturally, these are not the only considerations when choosing a product..........
Sarnie said:
The higher the balance the more likely that a product with the lowest possible rate with a fee will work out cheaper.
A low balance (under £100k for example) will out yield that having a higher rate and low/no fees work out cheaper.
There is a natural tipping point. Add up all fees plus x24 monthly payments......the total will tell you which is cheapest.
But naturally, these are not the only considerations when choosing a product..........
Will call you tomorrow ! my heads spinning with numbers A low balance (under £100k for example) will out yield that having a higher rate and low/no fees work out cheaper.
There is a natural tipping point. Add up all fees plus x24 monthly payments......the total will tell you which is cheapest.
But naturally, these are not the only considerations when choosing a product..........

Here's a good spreadsheet for comparing outcomes on two mortgages side by side.
http://www.locostfireblade.co.uk/spreadsheet/Index...
I found it through google, but from the website it looks like the creator is a bit of a petrolhead too, so might even be on here?
http://www.locostfireblade.co.uk/spreadsheet/Index...
I found it through google, but from the website it looks like the creator is a bit of a petrolhead too, so might even be on here?
There are people on here who are more qualified than me to answer but I have just done my mortgage. On the amount I borrowed for the fixed period I did, I was better off taking the higher interest rate with no fee. It was easy to work out. I guess this will vary based on individual circumstances. If you are using a broker, they should help you with this?
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