Mortgage - pay fee or not?

[New2ctc]

Hi, I have the choice of three fixed term deals, fixed for five years for security.
All other things being equal, these are the options:

1.44%. Fee 745. total paid over fixed 5yr period 51,113 @ 787 per month:

1.25%. fee 1495. Total paid 50,967@ 773 pcm.

1.31%. fee 1495. Total paid 51,223@ 777 pcm.

Can someone explain the pros & cons of these? Thanks.

Assess the cost over the fixed term

1. = £787 x 60 + £745 = £47,965
2. = £773 x 60 + £1495 = £47,875
3. = £777 x 60 + £1495 = £48,115

I assume it is a relatively small mortgage, so the 4 figure fees do not add much value. So based on pure cost 1 looks like a good bet.

However, it is also down to budget, can you absorb the additional costs (albeit minimal)

Also, if fee added to loan, you will pay interest on it too. So the actual cost will be more.

Also option 2 is £14 a month cheaper
Paying the £1495 would need a fixed term of over 8 years to be deemed the better option. Actuall only paying £840 more with the 'higher rate' over the 60 months

You have been given the ‘total to pay’ figures which show you overall the cheapest deal (middle) over the five years based on paying the fee upfront (from the figures you can calculate that it is actually over 5 years and 4 months - most deals have an end date rather than five years from completion).
If your main concern was the smaller upfront fee, then you can see that deal overall would cost you about £150 more over five years.
Ask for illustrations with fees added if you want to see how much more they will cost.

How come you only have the choice of 3 deals, there are hundreds to choose from.

Why are your totals higher than (5 x 12 x monthly payment) + fee? Is this because they're for more than 5 years - like a PP says, 5 years and 4 months for example?

If all other costs are the the same (any offers on valuation or legal fees, redemption penalties), you just pick the cheapest one, unless you are a FTB and are unable to pay the upfront fee.

Are there any deals with a smaller or no fee and how does that work out? The smaller the mortgage, the less worth it is paying a fee, this is one of the things you have to work out.

Just do the maths and choose the cheapest including the fee. It rarely works out better for us to pay an upfront fee as we have a comparatively small mortgage.

They’ve given you the total cost for comparison, which shows that 2) is the cheapest overall, even with the fee. That’s really all you need to know.

Thank you everyone for your brilliantly detailed & explanatory responses!
I am choosing from these three as I am staying with my current provider.
Yes, I'm 97 days from my current fixed term ending so it is 5yrs plus 3-4 months.
I'm going to add the fee on and then clear it in the first three months by overpayment (I have 10 % allowance).
I want a fixed term for job / parent / child security, there is barely a difference between 3y and 5 y so choosing 5 as I haven't lived here long and won't move yet.
I have 52% LTV.
Thanks again.