Tesco lowest ever fixed rate deal

ruggedtoast

Hopefully this will drive some actual competition back into the mortgage market.

coastline

Gracchus_Babeuf wrote: »

Fee £995!! :mad:

on the calulator I've used that adds 1% to the charge...2.99.

Pimperne1

ruggedtoast wrote: »

Hopefully this will drive some actual competition back into the mortgage market.

Like this 5 year fix at 2.99% with 70% LTV?

http://www.lovemoney.com/news/property-and-mortgages/mortgages/17872/chelsea-launches-market-leading-fiveyear-fixed-rate-mortgage

nollag2006

howee wrote: »

Good for Tesco, I hope they are very successful with their mortgage products. This is a great first move.

http://www.thisismoney.co.uk/money/mortgageshome/article-2219721/Tesco-Bank-launches-cheapest-mortgage-UK-fixed-rate-1-99.html?ito=feeds-newsxml

1.99% fixed for 2yrs, fee £995, LTV 60%

Good to see some of the government initiatives finally starting to break the log jam in the property market.

nollag2006

Thrugelmir wrote: »

At 60% LTV likely to be a few years into the mortgage term

It depends on where you are.

Anyone who bought in greater London in or around early 2009, as I did, could be sitting on a healthy 30% price accumulation by now.

Add that to three years repayments, while the less intellectually able await the 50% crash by Christmas, and a wise person will have done very well indeed.

So how did you get on Thrug?

:rotfl::rotfl::rotfl:

grizzly1911

nollag2006 wrote: »

It depends on where you are.

Anyone who bought in greater London in or around early 2009, as I did, could be sitting on a healthy 30% price accumulation by now.

Well as long as London is all right sorted.

wotsthat

Graham_Devon wrote: »

Might be alright for those with large mortgages, but 60% LTV. For the average joe, the fee kills any savings made on the table topping rate.

Lenders are looking to attract decent risks at low LTV rates and not the 'average joe'.

michaels

Graham_Devon wrote: »

Might be alright for those with large mortgages, but 60% LTV. For the average joe, the fee kills any savings made on the table topping rate.

Adds 0.2% to a 250k mortgage so still cheaper than most svr/tracker. However I can't see the value in a 2 year fix - if it was 5 yeard (and offset) then I would be very interested.

The Chesea 3.19 5 year offset is interesting but I prefer the FD fully flexible mortgage account type offset in case I need to access benefits during the period but there are no good value 5 year fixed offsets of this type at the moment (hint to FD/HSBC)

sabretoothtigger

5 year fix has to be the minimum otherwise it risks coming onto variable just as rates have risen.
I can see them spinning this out another 2 years as various people get reelected, the real risk is from 10 % rates which no one thinks possible even more as if all change is planned.
To avoid the worst its got to be at least 5 years

Gracchus_Babeuf

These fixed rate deals are a waste of time - why should I have to remortgage every 2 years just to keep my mortgage competitive? It costs a lot to do this, especially given arrangement fees, redemption fees, etc. There is a good 'term tracker' from HSBC with no fees at the moment - I'd rather go for that one.