MSE News: New 1.29% five-year mortgage fix lowest-ever 'by a mile' - but you'll...

App-based bank Atom is to offer a raft of "stunning" five-year fixed-rate mortgages this week...
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'New 1.29% five-year mortgage fix lowest-ever 'by a mile' - but you'll have to be quick'
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  • mrmajika
    mrmajika Posts: 986
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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! :D
  • Thrugelmir
    Thrugelmir Posts: 89,546
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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.
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    mrmajika wrote: »
    Does anyone know the offer period? Is it the common 3 months, or longer? Can't see anything in the press release either way.

    Normally until all the funds are committed.
  • ThePants999
    ThePants999 Posts: 1,748
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    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.
    But they have good rates at other LTV ratios too. The 60% one was just the one used for a headline.
  • mrmajika
    mrmajika Posts: 986
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    Thrugelmir wrote: »
    Normally until all the funds are committed.
    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.
    Whilst my posts do not constitute financial advice, I am always, without fail, 100% right! :D
  • mrmajika
    mrmajika Posts: 986
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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! :D
  • Ectophile
    Ectophile Posts: 7,278
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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.
  • Pincher
    Pincher Posts: 6,552
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    £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%.
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    Pincher wrote: »
    £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. ;)
  • Pincher
    Pincher Posts: 6,552
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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.
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