Delighted at my under 2% 5 year fix

Scad

Just locked in my mortgage for the next 5 years at 1.94% with fee of £995 and that's on an 80% ltv. I'm so delighted and given that i can overpay by up to 20% balance each year, it leaves open the door to be mortgage free by the end of the 5 year fix.

I literally can't believe the interest rates out there at the moment!

For anyone interested it's a deal from Tesco Bank.

:money:

Thrugelmir

Scad wrote: »

I literally can't believe the interest rates out there at the moment!

Thank the BOE.

Though wonder why such low rates are necessary. :think:

stueyhants

Best 5 year fixed I can find for 60% LTV is 1.59%. I never thought it would get that low, although I've delayed remortgaging a month and it dropped from 1.69% so I might wait a few more weeks just in case :-)

Scad

Yes it's definitely a potentially risky strategy, albeit one that could pay off.

My rates changed overnight and I thought that the rate must have gone up but turned out I was lucky and it went down. I personally don't think there is much more room for them to go down further but I've been wrong before

chelseablue

That's a good rate for 5 years.

We took out a 2 year fix for 1.49% in 2016, its up in March next year so hopefully we can secure similar

clairebeth

Chelseablue, you may find you can lock in a rate for when your fix ends. A lot of places allow you to lock in a deal for six months ahead of time.

dimbo61

You can overpay 20% of the outstanding balance each year.
So you cannot clear the Mortgage in 5 years but you can make a Huge hole in the debt

getmore4less

dimbo61 wrote: »

You can overpay 20% of the outstanding balance each year.
So you cannot clear the Mortgage in 5 years but you can make a Huge hole in the debt

68% paid off before any regular payments with just 20% each year.
Will be a lot more with regular payments.

If the 20% is possible in the first year and the same cash for the next 5 its paid off year 5 from the savings you could not pay