WWYD: 3 mortgage options
Just need some external advice/points of view as we have been given 3 mortgage deal options and we have decision fatigue from too many choices🤣
5.14% with no product fee. Monthly payments £1,282.83
4.97% with £1,499 product fee paid upfront. Monthly payments £1,253.35
4.97% with £1,499 product fee added to mortgage. Monthly payments £1,260.55
Context:
• All are over 40 year terms
• Locking in for 5 years
• Our priority has always been to have as low monthly payments as possible, but with only £30 in it it’s not really an issue. Whichever we go with, we will be overpaying each month anyway
• Paying the £1,499 upfront would mean this comes out of our savings, which is entirely our deposit. We would need to replace this money in the next month before we move, which isn’t possible, so would be borrowing from family and having to repay over time anyway. Because of this I’m thinking of going with option 1 because it would put us out more to try and source this additional income
• If we pay the fee and then change mortgage (ie if the rates come down and there is no fee) we get it refunded, but this is a big IF
• Lots of people advising NOT to add it to the mortgage as you pay interest over 40 years, which is fair enough, but present day me doesn’t know if she cares about that? Will 67 year old me will regret adding it?
Any advice welcome, thank you☺️