I am looking at two different rates that Nationwide have for current account customers and I am confused as one seems so obviously better than the other.
They are both 4 year fixed rates as follows:
2.59% with a £999 product fee - cost per month for what we want to borrow = £511.62
2.89% with no product fee - cost per month for what we want to borrow = £524.73.
Now the way I see it the second mortgage will work out £629.28 more expensive over the 4 year period but that is balanced out by not having to pay a £999 fee for it.
Am I missing something obvious here as I cannot see why people would chose the first product?
They are both 4 year fixed rates as follows:
2.59% with a £999 product fee - cost per month for what we want to borrow = £511.62
2.89% with no product fee - cost per month for what we want to borrow = £524.73.
Now the way I see it the second mortgage will work out £629.28 more expensive over the 4 year period but that is balanced out by not having to pay a £999 fee for it.
Am I missing something obvious here as I cannot see why people would chose the first product?