Santander 1.55% 5 Year FIx £1249 fee

IAMIAM

Worth it given current circumstances rate wise...or can do better?
£150k left to pay, usually opt for fee saver 2 year fixes or small fee (circa £500) 2 year fixes 

MFWannabe

What are the other options? 
Interest rate on options with no fee, interest rate on 2 year fix? 

El_Torro

Looks like a pretty sweet deal to me, I’d go for it.

Then again I always go with 5 year fixed rates so it’s the sort of deal I’d go for anyway

IAMIAM

I am contemplating applying and securing it now, I just have a feeling rates are going to continue to rise and I will find rates much higher than what I have now in April when deal runs out. I also think it saves me switching rates again in two years as don't think they will be lower than 1.5ish for 75% LTV. Santander seem to be good at rate switching (can do it 6 months early if better rate available), good with BTL if needs be and also porting etc if needs be.

IAMIAM

I am also tempted to add product fee to the loan, then if I then find a better deal, I cancel the application without incurring fees, but then can also pay the fee up to 21 days after completion if I do not want it added to the loan, which again seems a great feature!

[Deleted User]

Whats your mortgage term? and what loan to value are you sitting at?   are you currently with them or is this a remortgage from another lender?

IAMIAM

Term is 30 years, LTV 70%ish, currently HSBC

K_S

IAMIAM said:

Term is 30 years, LTV 70%ish, currently HSBC

 @IAMIAM On a total cost basis for the LTV and remo loan size you're looking for, the 5 year fix you've quoted is right up there with the 75% LTV best-buys available at the moment.

The only thing I'd highlight for your attention is that the ERC is a flat 5% (plus reimbursement of the free legals benefit for the first 2 years) until the end of the fix as opposed to a sliding scale which other products may offer.

Plus, it looks like a non-advised (execution only) sale so in effect the borrower loses the ability to complain if the product turns out to be wrong/inappropriate for their circumstances, partly the reason why Santander can afford to price it so keenly.

getmore4less

IAMIAM said:

Worth it given current circumstances rate wise...or can do better?
£150k left to pay, usually opt for fee saver 2 year fixes or small fee (circa £500) 2 year fixes 

here is the no fee table for that deal of 1.55% £1249 over 5 years
I have highlighted your combination of £150k over 20years 
You need a no fee rate better the 1.736% to be better off with  no fee

WHAT rate are they offering for no fee?

if you are overpaying the rate needed changes up a bit(equivalent to  shorter term)
(the second table is the breakeven mortgage for a given rate difference.)

	Mortgage amount
Full term	£50,000	£100,000	£150,000	£200,000	£300,000
5	2.564%	2.053%	1.884%	1.800%	1.717%
10	2.235%	1.890%	1.776%	1.719%	1.663%
15	2.168%	1.857%	1.754%	1.703%	1.652%
20	2.140%	1.843%	1.745%	1.696%	1.647%
25	2.124%	1.835%	1.739%	1.692%	1.644%
30	2.113%	1.830%	1.736%	1.689%	1.643%
	rate difference
	0.10%	0.20%	0.30%	0.40%	0.50%
5	£497,972.92	£248,788.34	£165,727.04	£124,196.56	£99,278.41
10	£336,920.05	£168,215.29	£111,980.69	£83,863.64	£66,993.59
15	£304,144.81	£151,807.59	£101,028.85	£75,639.73	£60,406.46
20	£290,069.78	£144,760.35	£96,324.21	£72,106.40	£57,575.91
25	£282,261.15	£140,850.35	£93,713.76	£70,145.72	£56,005.11
30	£277,308.19	£138,370.17	£92,057.83	£68,901.92	£55,008.58
IO	£240,540.60	£119,956.28	£79,761.85	£59,664.89	£47,606.93

IAMIAM

Thanks for all this. Much appreciated. I am tempted to go to a 2 year fix with a small fee like First Direct, but I am assuming that I will then pay a fee again, so in theory in two years time, I am paying what I could pay in one lump sum with Santander. 

Also, if I secure the rate, it will only be for 55 months as opposed to 60 months, as I am securing the rate earlier than needed.
Santander seem to be great, in terms of consent to let, porting, changing rate 6 months early etc, which is why I am keen. My only concern is how do I get the fee added but then pay the fee up front when then deal completes (a Martin Lewis tactic) and also the exit fee to leave Santander after the deal ends seems extortionate (£255) 

MFWannabe

Maybe you’d be better off getting a broker to find you the best deal? Sometimes brokers have rates available to them which aren’t available to us?