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

2

Comments

  • KerrBearrxo
    KerrBearrxo Posts: 49 Forumite
    First Anniversary First Post Combo Breaker
    edited 9 January at 12:29PM
    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
    kingstreet Posts: 38,750 Forumite
    First Anniversary Name Dropper Photogenic First Post
    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%.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • KerrBearrxo
    KerrBearrxo Posts: 49 Forumite
    First Anniversary First Post Combo Breaker
    edited 9 January at 12:46PM
    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
    kingstreet Posts: 38,750 Forumite
    First Anniversary Name Dropper Photogenic First Post
    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.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • london21
    london21 Posts: 2,096 Forumite
    First Anniversary First Post Name Dropper
    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
    KerrBearrxo Posts: 49 Forumite
    First Anniversary First Post Combo Breaker
    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
    naf123 Posts: 1,696 Forumite
    Name Dropper Combo Breaker First Post First Anniversary
    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?

  • Are Barclays likely to follow suit with these cuts for Buy to let mortgages?
  • englandsrose
    englandsrose Posts: 22 Forumite
    First Post First Anniversary
    Nationwide broker centre are opening late tomorrow perhaps they are preparing something special! 
  • Yorkie1
    Yorkie1 Posts: 11,550 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    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!
Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.8K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards