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  • FIRST POST
    • Addd
    • By Addd 31st Dec 17, 11:59 PM
    • 10Posts
    • 0Thanks
    Addd
    Mortgage Rate
    • #1
    • 31st Dec 17, 11:59 PM
    Mortgage Rate 31st Dec 17 at 11:59 PM
    Hello guys and gals.

    Iím currently surfing through the internet looking at mortgage deals. Iím a year off remortgaging yet but thought Iíd have a look out of interest.

    Iím making this post as Iím not sure if Iím missing something as regards to the interest rates on fixed mortgages. They are coming out with 1.5% on 5 years fixed, 80%ltv etc. Does that seem a little low?

    I know I got badly advised (not off here) when I took my current mortgage out but now Iím worried it was a lot worse than I originally thought as my interest on my current 5 year fixed is a lot higher than 1.5%.

    Anyone help me understand a little better?
    Thanks In advance.
Page 2
    • Beetroot24
    • By Beetroot24 3rd Jan 18, 11:45 AM
    • 29 Posts
    • 29 Thanks
    Beetroot24
    Just signed up for a 5yr fix at 1.99% no fee with Nationwide , LTV 50%. I couldnít find better than that last month and pretty happy as itís a big saving. I believe interest rates are going up and up over the next few years.
    Originally posted by marco_79


    That's the one we went for too, and we got £500 cashback a few days after the first payment was made. It worked out a lot cheaper than all of the lower rates with fees.


    I think Santander offer 1.79% for 5 years, but their ERC is higher (5% + pay back legal fees), and their SVR is higher.


    I am really impressed with Nationwide though. I just wish we'd switched sooner as we were paying 3.25% on 60% with the RBS
    • Boredatwrork
    • By Boredatwrork 4th Jan 18, 3:38 PM
    • 690 Posts
    • 1,359 Thanks
    Boredatwrork
    you can't use ball park numbers I have seen deals where the break even was around £80k and in some cases well over £150k.

    A very rough guide on the savings is amount borrowed * (rate difference) * (length of fix).

    I say rough because if you look at an example the real numbers are differnt

    £100k @ 2% 5y fix 25y term £423.85pm

    if the alternative was 1.8% with £999 fee.

    rough is £100,000*0.002*5= £1000. (pay the fee you save £1)

    real is add the fee make the payment the same see what's left after 5 years
    £100,999 1.80% £423.85 £83,913.12
    £100,000 2.00% £423.85 £83,785.00

    better off not paying the fee by £128.12

    The break even mortgage for that rate(2%), difference(0.2%), fee(£999) fix(5y) and full term(25y) is closer to £113,300

    change any one of those and the breakeven amount changes
    Originally posted by getmore4less
    I don't disagree if the Maths add up obviously, I was saying it just to provide an idea on what you can rule out mortgage rise more or less at a first glance.It can be misleading with so much on offer.
    WRORK is an acronym for the company I used to work for...for the 10th time ..and relax.
    • jonomassey
    • By jonomassey 4th Jan 18, 4:14 PM
    • 121 Posts
    • 10 Thanks
    jonomassey
    I've got a better deal that I was on, 1.59% fixed for 2 years, LTV 70% ish with help to buy roughly 3 years to run. Product fee was £999. Outstanding mortgage £178k. Current deal was 1.89%
    • Boredatwrork
    • By Boredatwrork 4th Jan 18, 4:17 PM
    • 690 Posts
    • 1,359 Thanks
    Boredatwrork
    I've got a better deal that I was on, 1.59% fixed for 2 years, LTV 70% ish with help to buy roughly 3 years to run. Product fee was £999. Outstanding mortgage £178k. Current deal was 1.89%
    Originally posted by jonomassey
    I'm currently on a 1.59% 2 year fee free LTV 65%. I doubt you can get close to that as a fee free now, looking round as I said in an earlier post few free you are starting around 1.79%ish
    WRORK is an acronym for the company I used to work for...for the 10th time ..and relax.
    • Thrugelmir
    • By Thrugelmir 4th Jan 18, 6:22 PM
    • 56,713 Posts
    • 50,082 Thanks
    Thrugelmir
    Outstanding mortgage £178k.
    Originally posted by jonomassey
    With a balance that large. Lenders will see the opportunity to profit in the longer term. Not all about today.
    ďOpportunities come infrequently. When it rains gold, put out the bucket, not the thimbleĒ
    ― Warren Buffett
    • ValiantSon
    • By ValiantSon 4th Jan 18, 8:53 PM
    • 192 Posts
    • 181 Thanks
    ValiantSon
    My current rate is 4.89% I reluctantly got a 5 year fixed. Id put 10% down on a £90'000 house.


    Can all these offers on Uswitch really be around 1.5%? Almost seems worth paying an early repayment charge just to get that deal. Im hardly paying any of my mortgage off currently with my payments. Mostly interest. it only comes down when I overpay which I try to do as often as I can.
    Originally posted by Addd
    If you are thinking of doing that then you might want to use this calculator. https://www.moneysavingexpert.com/mortgages/fixed-mortgage-calculator

    Don't forget about new product fees, however.
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