New Mortgage Deals

MACDONALDO67

Very interesting this. I am due to renew my mortgage deal in March and whilst perusing I noticed that a lot of the deals for fixed rates, especially the 5 and 10 year deals, are only advertised to 40% and 60% of the loans.

On top of that, for 2 and 3 year deals, with Abbey, they are advertising for 40% and 60% deposits only.

So for people on 75% and above deposits from previous deals surely this dumps on them getting a good deal.

By my reckoning, although the SVR is at 1.5%, and these 40% and 60% offers are at 4.94% for example, anyone above this is in for a bit of a shock..... including myself.

I could be offered a deal here which is worse than the current SVR? Surely that cannot be right??:rolleyes:

poppy10_2

MACDONALDO67 wrote: »

I could be offered a deal here which is worse than the current SVR? Surely that cannot be right??

It is right. Traditionally fixed rates were more expensive than the SVR, you paid more in return for the security of knowing your payments would be fixed for a certain period. The notion of a discounted fixed rate is a relatively recent concept

beecher

No lender has an SVR of 1.5% - that's the BoE rate. Most are somewhere between 3.5 and 5%

MACDONALDO67

beecher wrote: »

No lender has an SVR of 1.5% - that's the BoE rate. Most are somewhere between 3.5 and 5%

Sorry, yes I meant the Bank of England rate is at 1.5% but the Abbey rate is currently 4.94%. For me to get a new 2 year deal of 3.99% as a current lender with Abbey I have to have a 40% deposit. I don't so it is going to be interesting what I get offered.

Does anyone have a One Account mortgage and if so how do you find it?

_Andy_

MACDONALDO67 wrote: »

On top of that, for 2 and 3 year deals, with Abbey, they are advertising for 40% and 60% deposits only.

Which, from a lenders perspective, is entirely understandable in a house market where property prices are declining.

chrisclipson

MACDONALDO67 wrote: »

Sorry, yes I meant the Bank of England rate is at 1.5% but the Abbey rate is currently 4.94%. For me to get a new 2 year deal of 3.99% as a current lender with Abbey I have to have a 40% deposit. I don't so it is going to be interesting what I get offered.

Does anyone have a One Account mortgage and if so how do you find it?

I assume you mean a current borrower with Abbey? If so, no you can't get 3.99% but they are doing a 2 year fix at 4.19% at 75% LTV. Would that help for you?

MACDONALDO67

chrisclipson wrote: »

I assume you mean a current borrower with Abbey? If so, no you can't get 3.99% but they are doing a 2 year fix at 4.19% at 75% LTV. Would that help for you?

Think I'm going to have to cash in some of my premium bonds to get the 75% mark. I am also looking for longer term as well.

Alternatively I need to look into the One Account deal to see if that suits.

What a mess.

chrisclipson

Also, Abbey are very helpful if you call them - my girlfriend has a fixed rate expiring next month and she has been calling them on a weekly basis to see what the up to date offers are. They look at your history, amount outstanding etc and can tell you instantly the best rate they will give you. You may be pleasantly surprised...

chrisclipson

Forgot to add - if your deal expires in March they will happily quote you rates now.

MACDONALDO67

chrisclipson wrote: »

Forgot to add - if your deal expires in March they will happily quote you rates now.

I'm dreading the call but I will have to do it. You never know, you're right, I may be pleasantly surprised. Never, ever missed a payment or run into arrears. :beer: