Mortgage Rate

Addd

Beetroot24 wrote: »

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)

The fees on a few are just £100 for a valuation. 2.3% interest. I will have to work out if its worth while along with early repayment charges.

Addd

dimbo61 wrote: »

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

Why have rates come down? I assumed they had gone up until I looked. Is it because house prices have gone up since?




Thank you for the replies everyone by the way.

Addd

Has anyone had any success going to current mortgage provider, telling them about the deals you have found and getting them to give you a better deal then the current one you are on?

YHM

Generally lenders do not provide bespoke rates based on what other lenders are offering. Its a competitive market, so its best to review the market in full.

Beetroot24

Boredatwrork wrote: »

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.

Yeah, I agree, I just mentioned that figure as I gathered the OP owed less than £80K

Beetroot24

Addd wrote: »

The fees on a few are just £100 for a valuation. 2.3% interest. I will have to work out if its worth while along with early repayment charges.

You may need to pay legal fees on top, so be mindful of that. We just moved to Nationwide, but we got £500 cashback, so that covered the solicitor's fees and gave us a bit extra on top.


Nationwide offer 2.39% for 80% LTV, no valuation fees, plus £500 cashback, but I'm not sure if that works out cheaper than what you've already found.


I'd definitely do a few comparison calculations on what rates are available, and look into whether it is worth ditching your fix

aaronward

Anyone taken out the the 1.09% online special rate at Santander? For an LTV of 75% you can get a rate of 1.09%. Deal is fixed for 2 years and is only applicable online. Fees are around 1k but I don’t think there is anything else in the market at the moment that can beat this. Any one else got a better rate?

marco_79

Just signed up for a 5yr fix at 1.99% no fee with Nationwide , LTV 50%. I couldn’t find better than that last month and pretty happy as it’s a big saving. I believe interest rates are going up and up over the next few years.

getmore4less

Boredatwrork wrote: »

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.

you can't use ball park numbers I have seen deals where the break even was around £80k and in some cases well over £150k.

A very rough guide on the savings is amount borrowed * (rate difference) * (length of fix).

I say rough because if you look at an example the real numbers are differnt

£100k @ 2% 5y fix 25y term £423.85pm

if the alternative was 1.8% with £999 fee.

rough is £100,000*0.002*5= £1000. (pay the fee you save £1)

real is add the fee make the payment the same see what's left after 5 years
£100,999 1.80% £423.85 £83,913.12
£100,000 2.00% £423.85 £83,785.00

better off not paying the fee by £128.12

The break even mortgage for that rate(2%), difference(0.2%), fee(£999) fix(5y) and full term(25y) is closer to £113,300

change any one of those and the breakeven amount changes

Beetroot24

marco_79 wrote: »

Just signed up for a 5yr fix at 1.99% no fee with Nationwide , LTV 50%. I couldn’t find better than that last month and pretty happy as it’s a big saving. I believe interest rates are going up and up over the next few years.

That's the one we went for too, and we got £500 cashback a few days after the first payment was made. It worked out a lot cheaper than all of the lower rates with fees.


I think Santander offer 1.79% for 5 years, but their ERC is higher (5% + pay back legal fees), and their SVR is higher.


I am really impressed with Nationwide though. I just wish we'd switched sooner as we were paying 3.25% on 60% with the RBS