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5 Year Fixed Rate Deals
PiriPiri
Posts: 3 Newbie
I am about to sign up for Santander's 5 year fixed rate mortgage fixed at 2.99%, it does have a hefty arrangement fee, but I figure it's still worthwhile.
My question is, is it worth signing up to their 123 account since they say that they will give me cash-back if I pay my mortgage from their account. Normally I would avoid a charged current account but think the cash-back option should be worth it.
Is this a good deal, or does anyone know of something to beat it?
My question is, is it worth signing up to their 123 account since they say that they will give me cash-back if I pay my mortgage from their account. Normally I would avoid a charged current account but think the cash-back option should be worth it.
Is this a good deal, or does anyone know of something to beat it?
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Comments
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What's the LTV? Is it a new mortgage?0
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Which 5 year fixed rate deal is that - can only find 3.19 on the website?I think....0
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If you have a Flex A/C with Nationwide, they have recently brought back their 3.29% 4-yr fix, no product fee which comes with free legal fees + free valuation. 30% deposit for a max tenure of 40 yrs.
(2.99% 4-yr fix with £900 product fee, also with free legal fees + free valuation but you will pay less with the above ironically).
There is a small non-refundable booking fee of £99.00
With Santander you wil need to pay a non-refundable £295.00 for a valuation + £1495.00 product fee. 40% deposit for a max tenure of 35 years.
There is also a £225.00 exit fee with Santander vs £90.00 with Nationwide.
If you look at the whole picture, you will find that all the fees you will eventually end up paying with be more then the extra interest you will pay Nationwide. That was why we ran from Santander the moment we realise Nationwide brought its Flexclusive rates back.
That and the mind-numbingly poor customer service that Santander is famous for (Undisputed champion as UK Worst Bank).
If you don't have a Flex account with them, you can open one and transfer your direct debits to qualify.
Still your choice but I just thought I'd share since we just went through the whole rigmarole!
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Oh, but stay clear of their insurance, you can definitely find cheaper elsewhere! :beer:0
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To answer your initial question, you might want to do a calculation on your bills etc and how much you can get in cashback vs the £24 you are paying per year.
We did and we decided to open a 123 account to pay our Nationwide mortgage :T:rotfl: because this + our bills are enough to bring in enough cashback to cover the fee.
Also doesn't hurt to check TopCashback & Quidco to see if there is any extra cashback to be made! Win!0 -
Is the mortgage amount large enough to warrant paying a "hefty fee?"
Lower amounts are often better with a higher rate/low or no fee offer.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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