In a pickle w mortgage products. Any advice appreciated.

[blinkineckmum]

3 brokers phoning me. 1 and 2 ask for no fee.

1. 1.84% + arrangement fee £1499 (included in repayments). £674pm
2. 1.89% + arrangement fee £999 (as above). £677pm
3. 1.99%, no arrangement fee but pay broker £199. £683pm

Is there any way broker 3's product could be cheaper over time? Does it even matter for the sake of a tenner a month? All are 5 year fix.

I've already started the process with 2 (paid mortgage valuation but it's fully refundable). Thanks

With the third deal, you'll pay £9 x 60 = £540 more in repayments over the 5 years, plus the £199 to the broker. Does that help? Also who are the lenders and what are their SVRs at the moment?

My broker charged nothing. He said his fee came from the bank side. He’s been excellent too since.

Anyway, are all f those 2 yr fixed deals? If so, broker 3 is costing you an additional £240 so in total still well cheaper than broker 2.

Thanks for the replies.

41939
41619
41179

Add up the figures. Product 3 is the best value over 5 years.

Wow, thank you bombardier! That's what I needed. I wish I could see things that clearly myself.

(But I don't understand how lower monthly payments can equal a higher amount).

@Bombardier25966 I don't think your figures are right as OP says she will add the arrangement fee to mortgage in #1 and #2 if I read "included in repayments" correctly.

@blinkineckmum You need the mortgage amount really.
Use
www.moneysavingexpert.com/mortgages/mortgage-rate-calculator

BTW adding arrangement fee to mortgage is generally bad as you then pay interest on it, if you have the cash just pay it unless your cash investments are getting a higher return than the mortgage IR.

Assuming £200k mortgage balance outstanding at Day 0.
#1
End of 5 years you have paid 512674 = £40,440
You still owe £168,265

[You have paid £180 less over 5 years than #2 but you owe £241 more on your mortgage because you added the big arrangement fee. Essentially £61 worse than #2]

#2
Paid £40,620
Owe £168,024

#3
Paid £41,179 (£40,980 plus £199 fee)
Owe £167,541

[You have paid £559 more than #2 but you owe £483 less on your mortgage - £76 worse than #2]

Basically you need to re do these with the actual amount you are going to mortgage.

Didn't the brokers go thru how much you would pay in repayments, how much of that is capital and interest and what your balance would be?

If not they should have.

Thanks again everyone. I wish they taught this stuff at school. I like broker 3. I want to go with her but didn't want to make the wrong decision.