10 Year Fixed Rate Mortgage at 3.99%

Graham_Devon

Pimperne1 wrote: »

Okay, already dealt with. The mortgage is portable so it you don't STR then you will most likely need another mortgage. Pay the ERP and get it refunded if you take out another mortgage of the same amount within six months:

http://www.thechelsea.co.uk/mortgages/mortgage-guides/mortgage-process/moving-home.html

If you do STR then you pay it (but if you STR just to jump back into the market after the crash then you deserve to pay an ERP).

I would only suggest these type of products for people who have a good handle on what they expect to be doing for the next 10 years, for example if you plan a career break etc then you would be foolish not to think of what effect trying to apply for another mortgage during that break would have (ie you probably would fail the affordability test).

All I'm saying is you do not know what is around the corner.

You may not be able to get another mortgage with Chelsea when you move, therefore you will have to pay the charges.

I know I wouldn't get another today with my mortgage provider, due to changes in the mortgage industry.

You are right in what you are saying. It's great for someone who si completely comfortable in their home / life and doesn't forsee any need to move.

All I am doing is highlighting what you didn't, and suggesting, although a good offer, there are, as always, clauses....and in this offer, the clauses are pretty expensive ones.

staffie1

Excuse my ignorance, but what does STR stand for..?

Turnbull2000

staffie1 wrote: »

Crikey! What does that say about where BoE interest rates are likely to be longer term...?!

Interest rates will remain ultra low for much of the decade. In fact, 2-3% could become the new long-term norm. With the mortgage taps set to re-open in a few years time in a low rate environment and two full-time salaries now being typical for mortgage repayments, house prices will in all likelihood soar to new levels. Don't forget that immigration will likely continue at record highs and house building at record lows too.

J_i_m

On the face of it... sounds attractive... but it all falls apart with the tiniest bit of investigation since they lend you less money than many other lenders.

Pimperne1

J_i_m wrote: »

On the face of it... sounds attractive... but it all falls apart with the tiniest bit of investigation since they lend you less money than many other lenders.

Does the "tiniest bit of investigation" entail reading the first post where I stated that LTV was 70%?

They will, of course, lend up to 90% but not at this rate (otherwise I would have put 90% LTV rather than 70% LTV in the original post).

Pimperne1

I see on the shorter fixed rate Chelsea say "If we agree to you letting the property we charge an additional 1% for the duration of the letting period".

http://thechelsea.co.uk/mortgages_old/new_borrowers/3yr_fixed_85ltv.html

I think a 10 year fix at 4.99% for a BtL would also be a market leader (although my BS are only letting me let my PPR for two years at the same rate as I was paying on residential so they may have a fixed duration).

J_i_m

Pimperne1 wrote: »

Does the "tiniest bit of investigation" entail reading the first post where I stated that LTV was 70%?

They will, of course, lend up to 90% but not at this rate (otherwise I would have put 90% LTV rather than 70% LTV in the original post).

No that wasn't part of my investigation. Recently my frequent studies have been based on how much I'd likely be lent on my salary/income etc. Having a quick play on their how much could I borrow calculator showed me that Chelsea quoted the lowest figure of anything I've checked so far.

However, having used the slightly more detailed calculator just a minute ago, I admit my statement may have been premature, because the more detailed calculator suggests a significantly larger loan than the simple calculator.

I can't reley too much on LTV atm, since I can't say for sure at the moment how much I'm likely to have as a deposit, it could be anything between £20'000 and £35'000 depending on my earning factor.

System

That's an insane rate. 10 years, wow.

ruggedtoast

Goodness me, that is a good fixed rate mortgage.

ess0two

Joeskeppi wrote: »

That's an insane rate. 10 years, wow.

Certainly is,even Devon tried to pick holes in the detail and failed miserably.