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  • FIRST POST
    • aaronward
    • By aaronward 4th Jan 18, 11:38 AM
    • 8Posts
    • 0Thanks
    aaronward
    Santander online rate 1.09%
    • #1
    • 4th Jan 18, 11:38 AM
    Santander online rate 1.09% 4th Jan 18 at 11:38 AM
    nyone taken out the the 1.09% online special rate at Santander? For an LTV of 75% you can get a rate of 1.09%. Deal is fixed for 2 years and is only applicable online. Fees are around 1k but I don’t think there is anything else in the market at the moment that can beat this. Any one else got a better rate?
Page 1
    • ACG
    • By ACG 4th Jan 18, 11:49 AM
    • 16,113 Posts
    • 8,289 Thanks
    ACG
    • #2
    • 4th Jan 18, 11:49 AM
    • #2
    • 4th Jan 18, 11:49 AM
    It will depend on the size of the Mortgage.
    People often get caught up in the rate, but the fees can have a big impact.

    I remember doing a Mortgage with Barclays a year or 2 back. It was for about £15k and came with cashback of £750 or a grand. The rate was pretty high, but because of the lack of fees and cashback and a small balance, Barclays were not a million miles off paying the customer to have the Mortgage.

    Look at the whole deal, dont chase rates.
    I am a Mortgage Adviser
    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.
    • getmore4less
    • By getmore4less 4th Jan 18, 12:24 PM
    • 31,168 Posts
    • 18,681 Thanks
    getmore4less
    • #3
    • 4th Jan 18, 12:24 PM
    • #3
    • 4th Jan 18, 12:24 PM
    nyone taken out the the 1.09% online special rate at Santander? For an LTV of 75% you can get a rate of 1.09%. Deal is fixed for 2 years and is only applicable online. Fees are around 1k but I don’t think there is anything else in the market at the moment that can beat this. Any one else got a better rate?
    Originally posted by aaronward
    looking they have 3 rate/fee combos

    1.09% £1499 fee
    1.44% £999 fee
    1.69% £0 fee

    using the add fees make the payment the same method

    for a 2y fix 25y term loan the break even on the £0-£1,499 fee is £130,400.
    The 1.44% will cost more than both of them
    • Brock_and_Roll
    • By Brock_and_Roll 4th Jan 18, 1:04 PM
    • 780 Posts
    • 751 Thanks
    Brock_and_Roll
    • #4
    • 4th Jan 18, 1:04 PM
    • #4
    • 4th Jan 18, 1:04 PM
    Jeez, they are practically handing out free money!


    After costs, this must be a loss-leader for Santander. If it were not for the tax and the fact that I am a sensible old banker, I almost feel like taking out a £500k mortgage and buying £500k of IMPS or Shell stock [yielding 5%+]
    • aaronward
    • By aaronward 4th Jan 18, 4:42 PM
    • 8 Posts
    • 0 Thanks
    aaronward
    • #5
    • 4th Jan 18, 4:42 PM
    • #5
    • 4th Jan 18, 4:42 PM
    looking they have 3 rate/fee combos

    1.09% £1499 fee
    1.44% £999 fee
    1.69% £0 fee

    using the add fees make the payment the same method

    for a 2y fix 25y term loan the break even on the £0-£1,499 fee is £130,400.
    The 1.44% will cost more than both of them
    Originally posted by getmore4less

    Sorry not sure what you mean by the break even?
    • aaronward
    • By aaronward 4th Jan 18, 4:44 PM
    • 8 Posts
    • 0 Thanks
    aaronward
    • #6
    • 4th Jan 18, 4:44 PM
    • #6
    • 4th Jan 18, 4:44 PM
    It will depend on the size of the Mortgage.
    People often get caught up in the rate, but the fees can have a big impact.

    I remember doing a Mortgage with Barclays a year or 2 back. It was for about £15k and came with cashback of £750 or a grand. The rate was pretty high, but because of the lack of fees and cashback and a small balance, Barclays were not a million miles off paying the customer to have the Mortgage.

    Look at the whole deal, dont chase rates.
    Originally posted by ACG
    Looking at borrowing 290k over 35 years, is this still the best deal?
    • Thrugelmir
    • By Thrugelmir 4th Jan 18, 5:11 PM
    • 56,734 Posts
    • 50,107 Thanks
    Thrugelmir
    • #7
    • 4th Jan 18, 5:11 PM
    • #7
    • 4th Jan 18, 5:11 PM
    After costs, this must be a loss-leader for Santander. If it were not for the tax and the fact that I am a sensible old banker, I almost feel like taking out a £500k mortgage and buying £500k of IMPS or Shell stock [yielding 5%+]
    Originally posted by Brock_and_Roll
    Why is Shell yielding 5% is the other question you need to be asking yourself.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • Thrugelmir
    • By Thrugelmir 4th Jan 18, 5:16 PM
    • 56,734 Posts
    • 50,107 Thanks
    Thrugelmir
    • #8
    • 4th Jan 18, 5:16 PM
    • #8
    • 4th Jan 18, 5:16 PM
    Fees are around 1k but I don’t think there is anything else in the market at the moment that can beat this. Any one else got a better rate?
    Originally posted by aaronward
    You also need to consider what you will doing in the future. Remortgaging at the end of every product term will incur considerable cost. As the mortgage debt reduces the viability of switching lenders reduces greatly.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • ACG
    • By ACG 4th Jan 18, 5:28 PM
    • 16,113 Posts
    • 8,289 Thanks
    ACG
    • #9
    • 4th Jan 18, 5:28 PM
    • #9
    • 4th Jan 18, 5:28 PM
    Looking at borrowing 290k over 35 years, is this still the best deal?
    Originally posted by aaronward
    I have no idea, you would need to check yourself or employ a broker to do it on your behalf. But because it is a larger mortgage, the fee is an easier hit to take - but without researching I have no idea if it is the best or not.
    I am a Mortgage Adviser
    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.
    • YHM
    • By YHM 4th Jan 18, 5:34 PM
    • 439 Posts
    • 154 Thanks
    YHM
    Yes it is a good rate....not sure how the FCA would see incentivising Execution Only transactions mind....
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, 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
    • dimbo61
    • By dimbo61 4th Jan 18, 11:06 PM
    • 9,650 Posts
    • 5,208 Thanks
    dimbo61
    This is a big/huge mortgage and HUGE decision /commitment so why not employ a mortgage broker.
    To get that size mortgage you must earn a considerable income and have a good deposit.
    Will you be using a solicitor and a RICS surveyor ?
    • getmore4less
    • By getmore4less 5th Jan 18, 9:38 AM
    • 31,168 Posts
    • 18,681 Thanks
    getmore4less

    using the add fees make the payment the same method
    for a 2y fix 25y term loan the break even on the £0-£1,499 fee is £130,400.
    The 1.44% will cost more than both of them
    Originally posted by getmore4less
    Sorry not sure what you mean by the break even?
    Originally posted by aaronward
    That is the mortgage size where the end result is the same and it does not matter which deal you pick.

    The lower rate covers the added fees over the period with the same payment so you break even.

    Smaller mortgage you take the no fee version
    Larger mortgage you take the fee based version.

    There are other factors like some people want the lower payment what ever the extra cost.

    One thing to note is that the break even point is determined by the payment, if planning to overpay that needs a new calculation based on the actual(estimated) payment not the contractual one based on the term.

    In the above example the payment was £533.24 which gives a break even around £130,400.

    if the plan was to pay £600pm the break even then becomes £131,150


    Also note the way amortization calculation work, the reality of daily interest and payments not being exactly on time(weekends) these are approximate numbers and only need more careful consideration if your mortgage is close to the crossover point, most people find they are significantly one side or another.
    • aaronward
    • By aaronward 5th Jan 18, 5:11 PM
    • 8 Posts
    • 0 Thanks
    aaronward
    Repayments are around £837 .Looking at overpaying so total repayment a month will be 1k. We want the flexibility of having the option of not over paying in case of emergency. That’s why we have decided on keeping the term at 35 years. I think this is the best deal on the market at the moment and don’t see any need of getting a mortgage advisor.

    Apologies with the break even I am still unsure what this actually is. As my loan is going to be for around 292k this is over the break even point.
    • aaronward
    • By aaronward 5th Jan 18, 5:34 PM
    • 8 Posts
    • 0 Thanks
    aaronward
    This is a big/huge mortgage and HUGE decision /commitment so why not employ a mortgage broker.
    To get that size mortgage you must earn a considerable income and have a good deposit.
    Will you be using a solicitor and a RICS surveyor ?
    Originally posted by dimbo61
    This is a remortgage and Santander are supplying the solicitor and Surveyor, they pay the fees which again is an incentive.
    Last edited by aaronward; 05-01-2018 at 5:39 PM.
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