Is 3.99% 5 year fix the lowest it will go ??

sandspider2000

Gazza1964 wrote: »

- and there going to give me 5% interest for the first year on the account I just opened ( upto £2500 ).

Can I ask how you got 5% interest on the account? I just opened the standard current account with them for this mortgage (can't remember the name of the account) and the interest rate was 0.5% if I remember rightly! (Still better than the 0.01 I think Natwest are currently paying on my normal current account )

Cheers,

Giles

sandspider2000

Q_Wales wrote: »

I don't suppose these deals are still valid for buy to let mortgages?

Nope, I'm afraid not.

cbrpaul

Gazza1964 wrote: »

I decided this was good enough for me and completed an application over the phone today

how long did it take over the phone Gazza, and did they credit check there and then also ?

thx

Gazza1964

Premier Direct Current Account


An online bank account that pays a great rate.

• Earn 5.00% AER (variable) on balances up to £2,500. After one year, 1.00% AER (variable) applies. Balances over £2,500 earn 0.10% AER (variable).
• 0% EAR typical overdraft. No usage fees on arranged overdrafts for 12 months from when you open the account (new customers only). A usage fee of 50p a day (up to £5 a month) applies after that. Maximum overdraft limit is £2,000.
• You must be over 21. You’ll need to pay at least £500 every month into your bank account. You need an e-mail address and access to the internet.

This is straight off their website and was offered to me after dealing with the mortgage part of my application

I think I was on the phone about an hour - although to be fair it may have been quicker if I had had all the info they wanted to hand. The woman I spoke to was very good and yes they did the credit check there and then and also took payment for the valuation - my key facts document was emailed to me. They are going to call me back tomorrow about mpi and life cover as I wanted to check exactly what I already had in place and if it was transferable from my existing lender.

samsuka

cbrpaul wrote: »

I know no-one has a crystal ball ,

Im convinced the low BoE rate is a temporary thing and feel rates will need rise steadily towards the end of this/begining of next year , mainly due to inflation and a recovery needed !!!

What inflation? The world is worried about deflation at the moment, and so where is inflation going to come from, especially at the moment.

And they won't raise rates as it will hinder any recovery. I think inflation is likely to remain low for a long time and we will see rates at 1% or below until late 2010 at least.

So better mortgages will come back, especially when the securitisation market opens up again and banks can lend a bit more freely. The market is devoid of competition at the moment and they are trying to prevent people from borrowing, hence the high LTV's and poor interest rates. I am holding off until late summer when i think things will come back.


Thanks

S

caracal_77

Gazza1964 wrote: »

Premier Direct Current Account


An online bank account that pays a great rate.

• Earn 5.00% AER (variable) on balances up to £2,500. After one year, 1.00% AER (variable) applies. Balances over £2,500 earn 0.10% AER (variable).
• 0% EAR typical overdraft. No usage fees on arranged overdrafts for 12 months from when you open the account (new customers only). A usage fee of 50p a day (up to £5 a month) applies after that. Maximum overdraft limit is £2,000.
• You must be over 21. You’ll need to pay at least £500 every month into your bank account. You need an e-mail address and access to the internet.

This is straight off their website and was offered to me after dealing with the mortgage part of my application

I have Premier account with them for almost a year now (started with 8.5% AER upto £2500, now it's 5.00% AER). Not bad getting £12-13 every 16th of the month, for doing nothing... (use this account only for work expenses).

cbrpaul

samsuka wrote: »

What inflation? The world is worried about deflation at the moment, and so where is inflation going to come from, especially at the moment.

And they won't raise rates as it will hinder any recovery. I think inflation is likely to remain low for a long time and we will see rates at 1% or below until late 2010 at least.

So better mortgages will come back, especially when the securitisation market opens up again and banks can lend a bit more freely. The market is devoid of competition at the moment and they are trying to prevent people from borrowing, hence the high LTV's and poor interest rates. I am holding off until late summer when i think things will come back.


Thanks

S

the world maybe worried about deflation, but im more interested in the UK !!!

Overview of the Inflation Report for UK - February 2009

" The prospects for inflation, as for economic growth, remain unusually uncertain. There are significant risks on both sides of the inflation projection. "

adandem

In think we might ditch our current deal for this one.

We've had a quote and we can keep our current monthly payment BUT reduce the term by 5 years:j The overpayment allowance is good too.;)

ETA - I hope I'm right in thinking that the deals won't get too much better than this

cbrpaul

Well well well , !!!!

just out today !!!

" The Retail Prices Index (RPI), which includes housing costs, fell to 0% in February on an annual basis from 0.1% in January.
But another measure of inflation showed an unexpected rise for the month !!!!!!!!!!!


'Volatile' The increase in CPI has obliged Bank of England head Mervyn King to write to Chancellor Alistair Darling, to explain why inflation is more than one percentage point above the government's own 2% target."

sandspider2000

Gazza1964 wrote: »

Premier Direct Current Account


An online bank account that pays a great rate.

• Earn 5.00% AER (variable) on balances up to £2,500. After one year, 1.00% AER (variable) applies. Balances over £2,500 earn 0.10% AER (variable).
• 0% EAR typical overdraft. No usage fees on arranged overdrafts for 12 months from when you open the account (new customers only). A usage fee of 50p a day (up to £5 a month) applies after that. Maximum overdraft limit is £2,000.
• You must be over 21. You’ll need to pay at least £500 every month into your bank account. You need an e-mail address and access to the internet.

This is straight off their website and was offered to me after dealing with the mortgage part of my application

I just spoke to the current account department, and the (not very with-it sounding) chap said the interest rate is definitely 0.5% up to £2500...?

Edit - I think I have the Premier current account rather than the Premier Direct current account. The only differences I can see is that the P account has lower credit interest and European travel insurance cover included. Is there a monthly fee for the Premier Direct account?

Thanks.