MSE News: Act now. Fixed mortgages near rock-bottom 28 October 2015 at 3:03PM in Mortgages & Endowments 4 replies 1.4K views

Former_MSE_Paloma

Remortgaging just means switching your deal to a better one. Now's a great time, as rates are near all-time lows...

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Act now. Fixed mortgages near rock-bottom




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Pincher

Still on my Mortgage Express BOE+1.75%= 2.25%, interest only.
£3,375 a year, £281.25 a month if it was £150k.

Go on, offer me a 20% discount on the mortgage, and I'll move away.

On the other hand, 20% on a £200k mortgage is £40k, it's cheaper to hire a professional to bump me off for £2,000. They know where I live, it's on the mortgage application, :eek: .

VT82

I think they'll be perfectly happy with you on 2.25%.


It sounds like an old mortgage, so well-seasoned, so probably low LTV, so low risk/low capital weighting.


2.25% isn't a bad return for them, given how low the cost of funds has got in recent years. It's not 2010 any more, lenders aren't tearing their hair out at back book mortgages paying BBR + 1.5%+ any more.


Interest only and on a term tracker means the balance won't reduce, and is unlikely to redeem, so less need to churn you as a customer (as opposed to people getting rates around 2%, and churning every couple of years, and having to be replaced with new lending at thin margins).


I wouldn't be expecting a discount to leave any time soon.

Thrugelmir

Pincher wrote: »

Still on my Mortgage Express BOE+1.75%= 2.25%, interest only.
£3,375 a year, £281.25 a month if it was £150k.

Go on, offer me a 20% discount on the mortgage, and I'll move away.

On the other hand, 20% on a £200k mortgage is £40k, it's cheaper to hire a professional to bump me off for £2,000. They know where I live, it's on the mortgage application, :eek: .

Perhaps they'll sell you on. Cheaper than bumping you off.

Pincher

Thrugelmir wrote: »

Perhaps they'll sell you on. Cheaper than bumping you off.

Usually you sell off deadbeat debts at a huge discount, like if I owed £1,000, they sell it to a guy with a Rottweiller for £100. The guy then adds a collection fee and breaks my leg if I don't pay £2,000. That's a 90% discount to the lender.

20% is a better deal, Shirley?