Mortgage Rate

Addd

Hello guys and gals.

I’m currently surfing through the internet looking at mortgage deals. I’m a year off remortgaging yet but thought I’d have a look out of interest.

I’m making this post as I’m not sure if I’m missing something as regards to the interest rates on fixed mortgages. They are coming out with 1.5% on 5 years fixed, 80%ltv etc. Does that seem a little low?

I know I got badly advised (not off here) when I took my current mortgage out but now I’m worried it was a lot worse than I originally thought as my interest on my current 5 year fixed is a lot higher than 1.5%.

Anyone help me understand a little better?
Thanks In advance.

[Deleted User]

No one can advise whether your rate is high without knowing a) your circumstances and b) the rate.

MeltingSugs

What's your current rate? A lot of the high street SVRs are 3.99%, some more. My rate is higher than 1.5% but still lower than 3.99%. Half the reason my broker recommended our current lender was because of his knowledge with regard to who's SVRs fluctuate the most/are generally higher than competitors. We ported and borrowed extra with the same lender because it worked out cheaper than paying to exit the first mortgage and amalgamating with someone else.

Addd

My current rate is 4.89% I reluctantly got a 5 year fixed. Id put 10% down on a £90'000 house.


Can all these offers on Uswitch really be around 1.5%? Almost seems worth paying an early repayment charge just to get that deal. Im hardly paying any of my mortgage off currently with my payments. Mostly interest. it only comes down when I overpay which I try to do as often as I can.

dimbo61

4 years ago mortgage rates were higher !
You only had a 10% deposit !
You are now looking at 80% LTV mortgage deals.
4 years have passed and things change

Samsung_Note2

How much will they change in 6 months or a years time...can you look that far in advance.??

Would it be better to wait until a time where a deal can be done.

clairebeth

It may well be worth paying the fee to change deals if you are going to save over 3%. If you look up on this site about 'ditch the fix,' you will find info about it.

Thrugelmir

How much are the fees on the remortgage products? A low interest rate often comes with a caveat. As lenders are after sizable remortgaging balances.

Beetroot24

What are the fees on such low rates??

Beetroot24

Thrugelmir wrote: »

How much are the fees on the remortgage products? A low interest rate often comes with a caveat. As lenders are after sizable remortgaging balances.

I didn't see this post before I posted, but I totally agree.


We have just fixed up for 5 years, on a slightly higher rate with no fees, which has worked out a lot less expensive than paying £1k+ in fees for a lower rate, because we have a relatively small mortgage.


On a mortgage of less than £80k, it probably doesn't work out paying a grand or more for a "cheaper" rate (but double check on the mortgage comparison calculator on here)

Boredatwrork

Beetroot24 wrote: »

On a mortgage of less than £80k, it probably doesn't work out paying a grand or more for a "cheaper" rate (but double check on the mortgage comparison calculator on here)

I would say anything less than a 120-140k doesnt work out that great with a 1k fee, and certainly not a 2 or 3 year product.

Most fee free products that I have seen recently (60% LTV) start at around 1.79% that seems to be the best deal at the moment.