It’s that time of the year, your mortgage deal is close to expiring and reverting to the lenders standard variable rate and you’re on the lookout for the next deal to switch too.
While you can see that a lower interest rate will bring your monthly payments down, you are baffled by the number of product fees, arrangement fees, valuation fees and so on.
Some people just add the fees to the mortgage loan when they remortgage and take the lower monthly payment and are happy with that – but this might not be really putting them any closer to clearing that mortgage than before switching mortgages.
Sometimes getting the slightly higher rate is more beneficial than the lower rate with lots of fees. Sometimes the rate that has the longest offer period is the best as it offers a more predictable time when planning your budgets.
Using our remortgage calculator you can enter any deals that you have seen and see the true cost of each deal over the offer period that has been advertised. You will notice how much of your balance remains at the end of each deal and most of the time, the deal with the low rate and high fees leaves you with a higher mortgage balance when time comes to switch again.