MSE News: Mortgage rates are falling – five-year fixes to drop under 4%. But will they get cheaper?

KerrBearrxo

kingstreet said:

KerrBearrxo said:

Can someone advise me because I'm so confused. I too have seen these "interest rate drops" all over the news and have been following it for some time as my FT comes to an end in April. Santander released a press release in December stating that 60% LTV five-year FT with a £999 product fee is now 4.39% and 75% LTV 5 year with a £999 product fee is 4.51% - I am currently just above 60% LTV but will be 60% when my mortgage ends - so I have constantly checked my remortgage offers and none of them match these prices. All the five year fixed term deals are 5% or more. The cheapest I can find is 2 years £999 product fee for 4.82% so how do we actually get these "better deals"? The press release states its on residential mortgages and remortgages - which mine is... so what am I missing?

Have another look tomorrow. Santander is cutting overnight. Re the LTV, if the market indices are marking down prices/values don't rely on being 60% or less at a future date as lender systems can't forward date either.

That's fine but how can they release a press release in December (the 8th to be exact) so over a month ago and still not be offering the deals they are advertising in the news? It makes no sense? Even if I was on the 75% LTV I am still not being offered deals anywhere near as good as what they put in their press release over a month ago? I am 62.3% LTV to be exact currently. So I should be being offered the 75% LTV 5 year at 4.51% yet the cheapest one they are offering is 4.82% on a 2 year fixed term.

kingstreet

It's likely a press release won't be customer specific. Lenders have different products for different customer types so a purchase deal will differ from a remortgage deal will differ from a customer retention deal. Santander doesn't publish its customer retention deals outside the individual customer's account so it's impossible for brokers to compare without the customer providing the retention deals being offered.

Today's email, specifically mentioning customer retention says;-

Product transfers

All residential fixed rates reducing by between 0.04% and 0.82%.

KerrBearrxo

kingstreet said:

It's likely a press release won't be customer specific. Lenders have different products for different customer types so a purchase deal will differ from a remortgage deal will differ from a customer retention deal. Santander doesn't publish its customer retention deals outside the individual customer's account so it's impossible for brokers to compare without the customer providing the retention deals being offered.

Today's email, specifically mentioning customer retention says;-

Product transfers

All residential fixed rates reducing by between 0.04% and 0.82%.

It says it was applicable on remortgages for residential mortgages though? So does that mean only some and not all? Thanks for your replies by the way I'm genuinely confused lol. Does it mean new customers maybe and not current?

kingstreet

If you are an existing Santander borrower you are looking for a rate switch, or a customer retention product. A remortgage is taken by someone changing lender while remaining in the same property. The mortgage is the security tying the loan to the property so only by moving from one lender to another does the actual mortgage, the legal charge, change. It is confusing as the word remortgage is often misused as meaning rate switch and change of lender.

london21

Virgin money have dropped their rates a lot. I am now unsure if to wait further. 2 years fixed no fees 4.72%
5 years fixed 4.17%
My current fix ends 01/02/2024 currently paying £1083 standard variable  £2349 will likely drop further.

KerrBearrxo

kingstreet said:

If you are an existing Santander borrower you are looking for a rate switch, or a customer retention product. A remortgage is taken by someone changing lender while remaining in the same property. The mortgage is the security tying the loan to the property so only by moving from one lender to another does the actual mortgage, the legal charge, change. It is confusing as the word remortgage is often misused as meaning rate switch and change of lender.

Ah this makes sense now, yes it's very confusing thank you for clarifying! 

naf123

I think I would like to remortgage to Santander. My fix with Barclays ends 30/04/24.  Should I start the process now or not?

blackiejones77

Are Barclays likely to follow suit with these cuts for Buy to let mortgages?

englandsrose

Nationwide broker centre are opening late tomorrow perhaps they are preparing something special! 

Yorkie1

englandsrose said:

Nationwide broker centre are opening late tomorrow perhaps they are preparing something special! 

No announcements from Nationwide today sadly - can't wait for much longer than another week!