Reasonable rate offer for product swap?

ferry

Just throwing it out there , but we are a type of 'mortgage prisoner' with Santander due our poor credit profile. 
We will need to stay with them and have have been offered a 2 yr fixed rate of either 4.73 with £999 product fee or 4.99 without. 
Based on a £102k mortgage with 14 years left just curious how these deals stand up compared to other high st deals ( which we know we dont qualify for ) 

Many thanks 

K_S

@ferry Pretty good I'd say, especially after the rate rises over the past week, when compared to new business rates (someone moving lenders)

You can see the new business rates available in the market as of today on the MSE mortgage best buys here
https://www.moneysavingexpert.com/mortgages/best-buys/

ferry said:

Just throwing it out there , but we are a type of 'mortgage prisoner' with Santander due our poor credit profile. 
We will need to stay with them and have have been offered a 2 yr fixed rate of either 4.73 with £999 product fee or 4.99 without. 
Based on a £102k mortgage with 14 years left just curious how these deals stand up compared to other high st deals ( which we know we dont qualify for ) 

Many thanks 

SensibleSarah

That deal is potentially a bit better than the one my current lender just offered me - fix up in October. Small lender, regional building society.

They aren't offering any fixed deals at all currently, only a single discounted variable, which is -3.46% under their SVR (so that makes it 5.03% right now - but obvs will go up when interest rates inevitably rise again) for 3 years (no fee). 
I'm recently self-employed so might struggle to switch to another lender as limited proof of income available (not yet been trading for 2 years) so may have no choice but to go with this one. It's probably not that much worse than I could get from a mainstream lender rate-wise, but I would never normally go with a variable in the current situation because I want the certainty of fixed. I also want to move in the next couple of years, so would have preferred a 2-year option. But hey ho, it is what it is! 

ACG

It depends on the LTV. I think I have seen 2 year rates at around 4.2% at 78% LTV. 

But if you are comparing it to the alternative with adverse lenders, I think their rates start at about 7%. 

ferry

Thanks for the quick replies.
For clarity, my LTV is around 22% based on 102k balance / 475k valuation if my sums are correct

ACG

In that case, if you had the pick of lenders you would be looking at closer to 4%.
But if Santander did not offer retention deals you would be looking at closer to 7%.

I always say retention deals are around 0.5% above the best buys - there are exceptions of course. 

But I would take it as a win personally. 

simon_or

ACG said:

It depends on the LTV. I think I have seen 2 year rates at around 4.2% at 78% LTV. 

But if you are comparing it to the alternative with adverse lenders, I think their rates start at about 7%. 

ACG said:

In that case, if you had the pick of lenders you would be looking at closer to 4%.
But if Santander did not offer retention deals you would be looking at closer to 7%.

I always say retention deals are around 0.5% above the best buys - there are exceptions of course. 

But I would take it as a win personally. 

Which banks are these offering 2 year fixes to lend 102,000 at less than 60% loan to value and rates close to 4%? Are these still available?

I checked just now and the lowest non Northern Ireland rate for a 2 year fix is from some bank called Post Office Money at 4.89%, and then Cumberland something at 4.95% and then HSBC at 4.99%.

simon_or

ferry said:

Just throwing it out there , but we are a type of 'mortgage prisoner' with Santander due our poor credit profile. 
We will need to stay with them and have have been offered a 2 yr fixed rate of either 4.73 with £999 product fee or 4.99 without. 
Based on a £102k mortgage with 14 years left just curious how these deals stand up compared to other high st deals ( which we know we dont qualify for ) 

Many thanks 

They stand up very well compared to the lowest rates available now. With 100,000 and 2 year fixed I think zero fee will be cheaper overall for you.