I have been made two offers of a re-mortgage by my lender.
The first is the bank's standard variable rate of 7.00%. With this offer there are no fees and no penalties for early repayment.
The second is bank rate (currently 5%) plus 1.99%. With this offer there are no fees but a 3% early repayment fee for the first 12 months.
As they are both roughly the same and I don't expect to repay the mortgage in the next year, is there any advantage of the bank rate based mortgage over the bank standard rate?
Thanks