4.24% 4 year fix with no booking fee - should I bite their arm off?

JimmyTheWig

Hi,

We've got our mortgage with Santander (boo-hiss). Currently on a 5-year fix, paying 4.89%, which will end this coming Jaunary.
They are offering to let us remortgage now with no early redemption penalties.
We want another reasonable length fix and they're offering a 4-year fix for 4.24% with no booking fee.
This sounds like a great deal to me. Anyone want to convince me not to phone them back this evening and say "yes"?

There's an added complication that we've got a second mortgage on the property with Santander. This isn't on such a good rate, but it's a smaller amount over a shorter time-scale so its not so important.
But it does mean that to remortgage elsewhere we'd be looking at ERCs on the second mortgage. This second mortgage should be paid off in 4 years time.

Vital statistics...
Main mortgage: £136k with 15 years to go
Second mortgage: £24k with 5 years to go (though overpayments will reduce this term)
House value: £250k
Joint income: £44k
Young children: 4
Santander SVR (which we'd go to in January): 4.24%


Thanks,

Jim

[Deleted User]

If they are essentially offering to fix the SVR for 4 years with no fee, then I'd say go for it.

JimmyTheWig

Yes, it sounds good doesn't it. There's a 4% redemption, but I can't see us needing to redeem that rate. Can't see any other problems.

Kevmulcock

Mortgages

Hi there, I have spent the last few days trying to rearange my mortgage.

I am about to sign up for a 5yr fixed at 3.94%. With £99 fees It was the best I could find! I am pretty happy with that!

JimmyTheWig

Who is that with, Kev? Is there an arrangement fee?

ginvzt

Have you seen First Direct? 4.19% fixed for 5 years, for LTV 65% or less. Fees - £99.

JimmyTheWig

Thanks ginvzt. That's the sort of reply I was looking for.
However, redemption penalties on second mortgage would way more than overshadow the benefit of dropping 0.05%.

fraser

Kevmulcock wrote: »

Mortgages

Hi there, I have spent the last few days trying to rearange my mortgage.

I am about to sign up for a 5yr fixed at 3.94%. With £99 fees It was the best I could find! I am pretty happy with that!

looks to be the HSBC 5 year fix with 60% ltv

https://mortgages.hsbc.co.uk/product/186-5-year-fixed-special

the 4 year fix you have been offered sounds pretty good, especially if you have a redemption cost to go elsewhere with the 2nd mortgage - what is the redemption figure there if less than a £500 then you would be on a comparable footing to other products inc 5year offset fixes with YBS at 4.29 or the first direct range lifetime tracker 3.09 offset no ERC £99 fees

i was going to suggest the other option of svr and a tracker, but just looked at the santander site and the svr is the same as the fix you have been offered!

JimmyTheWig

Thanks fraser. I believe redemption on the second mortgage was 5% - i.e. around £1200.

Am off to phone Santander now.
Hoping no-one comes back with reasons not to!!


Thanks all. You've confirmed what I believed to be true.

sophievenusdoom

Kevmulcock wrote: »

Mortgages

Hi there, I have spent the last few days trying to rearange my mortgage.

I am about to sign up for a 5yr fixed at 3.94%. With £99 fees It was the best I could find! I am pretty happy with that!

Is that with HSBC? This seems the best deal on the market at the moment!!

Thrugelmir

JimmyTheWig wrote: »

We want another reasonable length fix and they're offering a 4-year fix for 4.24% with no booking fee.
This sounds like a great deal to me. Anyone want to convince me not to phone them back this evening and say "yes"?

What's the SVR rate after 4 years?