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MSE News: New 1.29% five-year mortgage fix lowest-ever 'by a mile' - but you'll...
MSE_Luke
Posts: 295 MSE Staff
App-based bank Atom is to offer a raft of "stunning" five-year fixed-rate mortgages this week...
Read the full story:
'New 1.29% five-year mortgage fix lowest-ever 'by a mile' - but you'll have to be quick'
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'New 1.29% five-year mortgage fix lowest-ever 'by a mile' - but you'll have to be quick'
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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Does anyone know the offer period? Is it the common 3 months, or longer? Can't see anything in the press release either way.Whilst my posts do not constitute financial advice, I am always, without fail, 100% right!
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Cynically one might say that this is simply marketing to generate awareness of a new brand. How bigger a tranche of money is allocated to these products one wonders. £900 fee and max 60% LTV. Narrows the potential interest somewhat as well.0
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But they have good rates at other LTV ratios too. The 60% one was just the one used for a headline.Thrugelmir wrote: »Cynically one might say that this is simply marketing to generate awareness of a new brand. How bigger a tranche of money is allocated to these products one wonders. £900 fee and max 60% LTV. Narrows the potential interest somewhat as well.0 -
I mean how long their DIP offer is valid for. Most mortgages have a 3 month window, but some are 6 months. I did ask on twitter, but their vague and diplomatic answer inferred that CS don't yet know.Thrugelmir wrote: »Normally until all the funds are committed.Whilst my posts do not constitute financial advice, I am always, without fail, 100% right!
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Mortgage offers are valid for 13 weeks from the point of their issue.Whilst my posts do not constitute financial advice, I am always, without fail, 100% right!
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They can offer the "stunning" deal because of the £900 fee just to set the thing up. At that point, they are quids in, and can afford to offer a lower rate.
Last time I renewed my fixed rate deal, I went for the higher interest no-fee option.If it sticks, force it.
If it breaks, well it wasn't working right anyway.0 -
£600,000 x 1.29% = £7,740 interest only a year.
£7,740 is small change, relative to my income, but even if I have £100k coming in, it's still six times income, relative to £600k.
It's relatively easy to put £600k to work, making 3% plus. The only problem is, will probably pay 37.5% dividend tax.
Now I know why gangsters go in for smuggling, prostitution and gambling, no tax!
Would have been the ultimate stooze, if they will lend me £600k at 1.29%.0 -
£600,000 x 1.29% = £7,740 interest only a year.
£7,740 is small change, relative to my income, but even if I have £100k coming in, it's still six times income, relative to £600k.
It's relatively easy to put £600k to work, making 3% plus. The only problem is, will probably pay 37.5% dividend tax.
Now I know why gangsters go in for smuggling, prostitution and gambling, no tax!
Would have been the ultimate stooze, if they will lend me £600k at 1.29%.
You'll also need to own a house valued at £1 million or over.
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Thrugelmir wrote: »You'll also need to own a house valued at £1 million or over.
£1.1million, if you believe Zoopla.
And no mortgage, so really need to liberate the equity somehow, to work it harder.
In fact, there must be loads of old ladies sitting on circa £1million properties, who could be living the life of Riley, if Atom would lend them £600k at 1.29%.
I know this old lady, who has a two up two down, terraced house, that is valued at £800k. Suburban North West London. She really could use some extra cash. But the standard equity release deal is nothing like 1.29%, or course. If Atom is serious about lending at 1.29%, lend her £100k, which is 12.5% LTV. It will transform her life, and they are sure to get their money back, with the house as security. But they will never do it.0
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