Anyone wants to share Ltv and their interest rates?

strawb_shortcake

Taken out 3 years ago, 53.6% LTV 
1.79% for 5 year fix, no fees and £250 cashback with Santander.

Should be down to 30% LTV by renewal time 

FTB21

annabanana82 said:

Taken out 3 years ago, 53.6% LTV 
1.79% for 5 year fix, no fees and £250 cashback with Santander.

Should be down to 30% LTV by renewal time 

Same rate as me, but im on a bigger ltv 75% (25yrs). Is your mortgage term really short?

strawb_shortcake

FTB21 said:

annabanana82 said:

Taken out 3 years ago, 53.6% LTV 
1.79% for 5 year fix, no fees and £250 cashback with Santander.

Should be down to 30% LTV by renewal time 

Same rate as me, but im on a bigger ltv 75% (25yrs). Is your mortgage term really short?

We have been in a position to over pay, so we started 5 years ago on a 32 year term, when  we remortgaged we knocked 5 years off taking us down to 27. Two maximum 10% overpayments has taken us down to 15 years.

rystaman

FTB21 said:

ninjaef said:

What a great question !

23% LTV 
1.25%  2 year fixed Offset account with YBS as an existing customer.
I am very fortunate to have more in the Offset than is in the mortgage debt. So they are now paying me for the mortgage - effectively . haha

I've had mortgages for over 30 years and change every 2 to 3 years of late. I twice over that time had a 5 year fixed ,  and they were bad deal. I paid way over the going interest rate for years. Since then I only go for 2 year fixed.
At the end of the day these mortgage providers are not stupid. They will have generated - or have access to - a plethora of data and will ensure they maximise profit. They are not in the business of making the home owner comfortable - but rather making a profit.
If I could do it all again I would never have had those two 5 year fixed "deals". 2 year deals seem to be the "sweet spot" where the evaluation of risk versus the customer retention - or loss. In other words it is difficult for the mortgage provider to offer a fixed deal for such a short term that both maximises profit and attracts/retains customers. The 3 and 5 year "deal" customers will end up funding the 2 year "deals" 

Interesting, my mortgage starts next month and i opted for 5 yr fixed as i thought now would probably be a good time to fix for longer than 2 yrs.

Can't remember what i was offered for a 2yrs fix at 75%ltv (25 yrs) but i vaguely remember it being few £ cheaper (negligible and wouldnt really notice) but then the arpc (i know this really should be disregarded) meant over 25yrs i was saving a BIG chunk in interest payments.

Curious on this, currently in the process of applying for one and am completely stumped in terms of the fixed period we should go for. I thought 2-year initially as the rates right now that we're being offered for 30 years at 85% LTV aren't too great (2.79%) but then thought maybe 3-5 years would be better? My logic was if in two years the interest rates are lower it'll be easier to remortgage rather than being lumped with another 3 years at a sub-standard rate. But then again it's all a guessing game  

Thrugelmir

FTB21 said:

ninjaef said:

What a great question !

23% LTV 
1.25%  2 year fixed Offset account with YBS as an existing customer.
I am very fortunate to have more in the Offset than is in the mortgage debt. So they are now paying me for the mortgage - effectively . haha

I've had mortgages for over 30 years and change every 2 to 3 years of late. I twice over that time had a 5 year fixed ,  and they were bad deal. I paid way over the going interest rate for years. Since then I only go for 2 year fixed.
At the end of the day these mortgage providers are not stupid. They will have generated - or have access to - a plethora of data and will ensure they maximise profit. They are not in the business of making the home owner comfortable - but rather making a profit.
If I could do it all again I would never have had those two 5 year fixed "deals". 2 year deals seem to be the "sweet spot" where the evaluation of risk versus the customer retention - or loss. In other words it is difficult for the mortgage provider to offer a fixed deal for such a short term that both maximises profit and attracts/retains customers. The 3 and 5 year "deal" customers will end up funding the 2 year "deals" 

Interesting, my mortgage starts next month and i opted for 5 yr fixed as i thought now would probably be a good time to fix for longer than 2 yrs.

Can't remember what i was offered for a 2yrs fix at 75%ltv (25 yrs) but i vaguely remember it being few £ cheaper (negligible and wouldnt really notice) but then the arpc (i know this really should be disregarded) meant over 25yrs i was saving a BIG chunk in interest payments.

No one knows what future rates might be. Odds on they'll be higher though. The decision can only be made on the basis of what's best at the time. A longer fix i.e. 5 years gives peace of mind if higher rates were to prove challenging. With a 2 year fix one is almost preparing to refix almost immediately. Paying product fees over the years adds up as well. 

FTB21

Thrugelmir said:

FTB21 said:

ninjaef said:

What a great question !

23% LTV 
1.25%  2 year fixed Offset account with YBS as an existing customer.
I am very fortunate to have more in the Offset than is in the mortgage debt. So they are now paying me for the mortgage - effectively . haha

I've had mortgages for over 30 years and change every 2 to 3 years of late. I twice over that time had a 5 year fixed ,  and they were bad deal. I paid way over the going interest rate for years. Since then I only go for 2 year fixed.
At the end of the day these mortgage providers are not stupid. They will have generated - or have access to - a plethora of data and will ensure they maximise profit. They are not in the business of making the home owner comfortable - but rather making a profit.
If I could do it all again I would never have had those two 5 year fixed "deals". 2 year deals seem to be the "sweet spot" where the evaluation of risk versus the customer retention - or loss. In other words it is difficult for the mortgage provider to offer a fixed deal for such a short term that both maximises profit and attracts/retains customers. The 3 and 5 year "deal" customers will end up funding the 2 year "deals" 

Interesting, my mortgage starts next month and i opted for 5 yr fixed as i thought now would probably be a good time to fix for longer than 2 yrs.

Can't remember what i was offered for a 2yrs fix at 75%ltv (25 yrs) but i vaguely remember it being few £ cheaper (negligible and wouldnt really notice) but then the arpc (i know this really should be disregarded) meant over 25yrs i was saving a BIG chunk in interest payments.

No one knows what future rates might be. Odds on they'll be higher though. The decision can only be made on the basis of what's best at the time. A longer fix i.e. 5 years gives peace of mind if higher rates were to prove challenging. With a 2 year fix one is almost preparing to refix almost immediately. Paying product fees over the years adds up as well. 

Yes agreed, im risk adverse so wanted a bit of "certainty" and at 1.79% for 5 years would only be about 25% of our combined take home pay so accepted that this would be affordable for us for 5 years.

Am hoping over the 5 yrs to make small overpayment so when we get to the 5yr mark we could possible be at the 60/55% ltv.

Our mortgage is fairly high (London prices 😑) so product fees in comparison to the size of mortgage isn't too heartbreaking but can see what you mean about having lots of £1k fees every 2yrs could add up especially if you have a small mortgage  (i.e non London prices)

FTB21

rystaman said:

FTB21 said:

ninjaef said:

What a great question !

23% LTV 
1.25%  2 year fixed Offset account with YBS as an existing customer.
I am very fortunate to have more in the Offset than is in the mortgage debt. So they are now paying me for the mortgage - effectively . haha

I've had mortgages for over 30 years and change every 2 to 3 years of late. I twice over that time had a 5 year fixed ,  and they were bad deal. I paid way over the going interest rate for years. Since then I only go for 2 year fixed.
At the end of the day these mortgage providers are not stupid. They will have generated - or have access to - a plethora of data and will ensure they maximise profit. They are not in the business of making the home owner comfortable - but rather making a profit.
If I could do it all again I would never have had those two 5 year fixed "deals". 2 year deals seem to be the "sweet spot" where the evaluation of risk versus the customer retention - or loss. In other words it is difficult for the mortgage provider to offer a fixed deal for such a short term that both maximises profit and attracts/retains customers. The 3 and 5 year "deal" customers will end up funding the 2 year "deals" 

Interesting, my mortgage starts next month and i opted for 5 yr fixed as i thought now would probably be a good time to fix for longer than 2 yrs.

Can't remember what i was offered for a 2yrs fix at 75%ltv (25 yrs) but i vaguely remember it being few £ cheaper (negligible and wouldnt really notice) but then the arpc (i know this really should be disregarded) meant over 25yrs i was saving a BIG chunk in interest payments.

Curious on this, currently in the process of applying for one and am completely stumped in terms of the fixed period we should go for. I thought 2-year initially as the rates right now that we're being offered for 30 years at 85% LTV aren't too great (2.79%) but then thought maybe 3-5 years would be better? My logic was if in two years the interest rates are lower it'll be easier to remortgage rather than being lumped with another 3 years at a sub-standard rate. But then again it's all a guessing game  

As previous poster mentioned it is lot to do with your take on risk.

Im risk adverse, but also managed to i think get a decent 5yr fixed, which is why i chose to fix for 5yrs, but who knows maybe in a yrs time the rates fall alot more and I'll be stuck on my rates for 5 yrs.

clueless_but_curious

FTB21 said:

annabanana82 said:

Taken out 3 years ago, 53.6% LTV 
1.79% for 5 year fix, no fees and £250 cashback with Santander.

Should be down to 30% LTV by renewal time 

Same rate as me, but im on a bigger ltv 75% (25yrs). Is your mortgage term really short?

Does a low term drag your interest rate down?

IAMIAM

If I would have picked a 5 year fix in 2016, 2018 and 2020. All would have resulted in a much much higher rate than my current two year fix, that's happened 3 times over 6/7 years, and I am about to fix again for another two for that same reason.
It is cheaper than the 5 year fix and based on history, most friends and family are on 5 year fixes around 2-3% still from 2017 onwards....
I also like the fact that I am always only 18 months away from a potential sale, fix for five years if rates suddenly double (current 80% LTV upwards practically have)  or sell, move, cash in or rent. 

alw1971

I am looking to move onto a Nationwide Mortgage when my present 2 year expires. Both 2yr and 5yr I think are 1.49% and this time I would go for the 5 yr, but we are looking at downsizing in the near future and therefore the exit fees are lower if I move during the 2yr rather than the 5yr.