To Fix with Santander in advance of June

Hi
I am currently on a 5 year fixed rate with santander which is due to end at the beginning of June. They have sent me a letter offering a 2 year fixed rate at 2.99% (£499 booking fee) if I reserve this rate before the 14th of March, to start in June when my current one expires.

LTV is 80%, Does anyone know of a cheaper altenative for an 80% ltv

Thanks in advance

Replies

  • I suggest your best bet would be to speak to an independent broker who can show you all the mortgages on offer. Make your decision from there :)
  • kingstreetkingstreet Forumite
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    What has made you consider a two year fix?

    What's the mortgage amount? Is it worth paying the fee?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Thanks for the replies :)

    The mortgage is £140k.

    I was looking at the 2 year fix purley as it's the cheapest rate I think we will get on our LTV, Santander have advised it is the cheapest rate they can offer us & after 14th March it would be around 4.64% for a 2 year fix.
  • kingstreetkingstreet Forumite
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    At that size of mortgage, paying a fee is probably going to get you better value for money.

    Don't accept what your current lender is offering just because it's the lowest rate it has available.

    Work out what would suit you best and look for options which match that, with your current lender and with others.

    If a two year fix isn't right for you, discard it as an option and look at what is.

    Other lenders offer free valuation and legals, so you'll need to factor in the arrangement fee and the fee to leave Santander.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Do you know which web sites are best for finding/ comparing the cheapest rates, thanks
  • olly300olly300 Forumite
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    kal12003 wrote: »
    Do you know which web sites are best for finding/ comparing the cheapest rates, thanks

    There aren't really.

    I suggest you find a broker.

    Then try something like moneysupermarket.
    I'm not cynical I'm realistic :p

    (If a link I give opens pop ups I won't know I don't use windows)
  • kingstreetkingstreet Forumite
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    kal12003 wrote: »
    Do you know which web sites are best for finding/ comparing the cheapest rates, thanks
    Establish the right type of rate option for you, before you start looking.

    Too many people find the rate and don't give much thought to the reasoning.

    If you think rates might be higher in two years, is a two year fix a bright move? It will be ending just as you are looking for a new deal at a time when rates are increasing?

    If you think rates might stay the same, is a tracker at a lower rate than a fix a better option? Such products may have no early repayment penalties, making it possible to fix later.

    Are you planning to pay off your mortgage in the near future? What if your life changes?

    Ask yourself the questions based on your personal circumstances. Then plan the framework of what you'll need, such as a three year tracker with no ERPs.

    Then look at the best way to find the best rate for that type of product.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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