MSE News: New 1.29% five-year mortgage fix lowest-ever 'by a mile' - but you'll...

phillw

Pincher wrote: »

If Atom is serious about lending at 1.29%, lend her £100k, which is 12.5% LTV. It will transform her life, and they are sure to get their money back, with the house as security. But they will never do it.

It would transform her life if she spends the money as she has no income to repay the mortgage, no doubt she would complain about miss-selling in 5 years time when they evicted her.

vkharch

Who are those selected brokers? As no list had been revealed yet.
I am still waiting:
We'll get that list out to you as soon as we can, please keep an eye on your inbox over the next 24 hours or so.
That was 17 hours ago.......

HornetSaver

Thrugelmir wrote: »

You'll also need to own a house valued at £1 million or over.

Hardly a rarity in certain parts of the country.

Wouldn't suprise me if the brokers in question are disproportionately based in certain parts of the country where £1m houses are a rarity though. A £900 fee is not unusually high, however when your savings offering is higher than your mortgage offering, and you have little other business, then that fee becomes disproportionately important. Therefore you want brokers who are likely to be dealing with cheap properties.

Pincher

phillw wrote: »

It would transform her life if she spends the money as she has no income to repay the mortgage, no doubt she would complain about miss-selling in 5 years time when they evicted her.

How do you think she is living now?
Of course she has income, widows pension from her husband, and state pension, it's just that money is tight, all the while sitting on a gold mine.

It's just a bit messy when it comes to her death, since the heirs may fight over the sale, because the lender just wants a quick auction, whereas the heirs will want as much as possible.

An interesting point is the additional inheritance allowance for main residence.
As the property will carry on appreciating, it is entirely possible that the excess value will incur 40% IHT. So, let us say she passes away around 2021, when the overall allowance is £1million, but the property is worth £1.1million. Having a £100k mortgage brings the estate back down to £1million.

Bark_2

I'm able to offer a 50% deposit on the home I'm looking at, but as my Sant123 savings are paying 1.5%, does this mean I should borrow more i.e. put a deposit of 40% and borrow 60% as my savings are at a higher rate than mortgage interest?! Seems like it would be worth keeping that extra 10% back a) cos it'd be worth it and b) for a rainy day?! New to this so appreciate advice. Cheers all!

vkharch

London & Country (L&C) does offer them, it's on their website too. It is still available and apparently I've been offered a mortgage but it was too low in my circumstances.

Loan-to-income ration for me was about 3.3

Good luck!

boonkoh

Don't forget you have to pay income tax on your savings interest. Assuming you're already paying income tax from other sources of income, your interest from Santander will be taxed at least at 20%.

In which case the 1.5% becomes 1.2% net (or worse)...

Bark_2

boonkoh wrote: »

Don't forget you have to pay income tax on your savings interest. Assuming you're already paying income tax from other sources of income, your interest from Santander will be taxed at least at 20%.

In which case the 1.5% becomes 1.2% net (or worse)...

But don't you get £1,000 per annum savings interest tax free now? My Santander savings wouldn't push me over that. Even with the max £20k that's £300 per year. In any case could probably find an ISA paying 1.3% or more?

ThePants999

Ectophile wrote: »

They can offer the "stunning" deal because of the £900 fee just to set the thing up. At that point, they are quids in, and can afford to offer a lower rate.

Last time I renewed my fixed rate deal, I went for the higher interest no-fee option.

£900 is not an unusual product fee. I paid £995 on my current mortgage. On my mortgage size, the lower interest rate saves that back in less than a year.

mrmajika

vkharch wrote: »

Who are those selected brokers? As no list had been revealed yet.
I am still waiting:
We'll get that list out to you as soon as we can, please keep an eye on your inbox over the next 24 hours or so.
That was 17 hours ago.......

Hi

Thanks for showing an interest in Atom bank mortgages. You’ve got great taste!

Whether you’ve just discovered your dream pad, or you’re remortgaging your current home, we’re chuffed that you’re thinking of us on your journey.

So, click here to download your list of brokers and get started.

LINK>>>http://www.atombank.co.uk/~/media/atom/downloads/atom_mortgage_broker_list.pdf

Get in contact with your chosen broker to discuss the best mortgage for you and your abode. If we’re the right pick for you, we’ll be ready and waiting on the other side of the app.

Hope to hear from you soon,

Charlotte

Atom Customer Support