Mortgage question

[touch]

Yes, because I used nationwide for my recent mortgage. They always include it in the overall cost for comparison.

The "overall cost for comparison" does take into account the fees but not the "total paid".
In your example figures, the overall cost for comparison including the fee is 3.6% and without the fee is 3.1%.

The total paid on the loan doesnt include the fee, so rather than him saving £300 by taking the product with fee, he'll actually be £700 worse off.

 

[Kol]

Have you done the calculation? I'll admit, I haven't but 0.5% difference for 120 months should not see him paying £700 more.

 

[hornetstinger]

How come you have £500 moth it's showing about £400

 

[Kol]

How come you have £500 moth it's showing about £400

I did it based on a 10 year mortgage, how long were you looking for the term to be? It will go down if I put in 15 or 20 for example.

 

[hornetstinger]

13 years.

 

[touch]

Have you done the calculation? I'll admit, I haven't but 0.5% difference for 120 months should not see him paying £700 more.

The site does the calculation for you

(using your example rather than OP's numbers)

Total for product with fee = £60,216.00 + £999 = £61,215

Total for product without fee = £60,506

Saving = £709

 

[hornetstinger]

What if you take overpayment into consideration? I may be able to pay 10% annually off

 

[Kol]

The site does the calculation for you

(using your example rather than OP's numbers)

Total for product with fee = £60,216.00 + £999 = £61,215

Total for product without fee = £60,506

Saving = £709

Weird! I'm not 100% convinced, when I went through my application with Nationwide we sat down and did the figures and mine came out cheaper overall by going with the upfront fee (and in all the calcs it was always included in the overall comparison).

Perhaps they've changed it

Hornetstinger, best to check with them directly as based on one view the upfront fee works out £300 cheaper over the 10 years or £700 more expensive which defeats the object of going for upfront fee mortgages. Maybe it's the relatively good LTV that causes this.

 

[hornetstinger]

I've gone for a 12 year mortgage, 10 year fixed, 2.69%. No fee. Borrowing £53,000. It's saying if I overpay pay 10% of remaining debt, £490 a month I'll be mortgage free 4 years 2 months earlier saving £3700 in interest.

Is this right?


https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator#results

Do Nationwide have a facility to online banking where you can simply add maximum per month, that protects against accidentally paying to much, or do you have to work it out yourself?

What if you go over by 1p do you pay the 7% remaining fee (which pretty much wipes out saving interest with my short mortgage)

 

[Mercenary Keyboard Warrior]

Fee is only on the overpayment in excess of what you allowed

Say you allowed £5000 per year, you overpay £5100 by mistake, you pay the 7% on the £100 only

 

[hornetstinger]

How come this warning "you risk 1000's in fees" yet later says £150 fee - which tbh is not a massive amount.

https://www.moneysavingexpert.com/mortgages/mortgages-vs-savings

 

[Haggisman]

Because in the example they've given it's only £150, again it depends completely on the figures you use.

If you have an overpayment fee of 5% and pay £40k over the allowance then you pay £2k...