Is it possible to get a mortgage with interest rate lower than 4.5%?

Scooby_Man

I'm looking for a mortgage that is fixed at base rate for 2 years (and will then tart on!).

The idea is to may as little as possible in terms of interest and fees (which are annoying ;-))

Does any mortgage lender offer a starting rate that is below the base rate?

KTF

The Nationwide offers a 2 year fixed @ 4.39% and there are plenty of others here:

http://www.moneyfacts.co.uk/mortgages/charts/mortgages_fixed_noext.htm

Is this your first mortgage or are you looking to remortgage?

Fairdo_2

A&L at 4.24% and Halifax at 4.29% both for 2 years also spring to mind, but bear in mind up front and exit costs for these deals.

Scooby_Man

I am looking to remortgage....

Thanks for the links - I guess arrangement/exit/legal fees are the distinguishing factor as they have to be paid upfront and can sting badly for the 1st month...

Ian_W

As Fairdo says there are quite a few with rates below 4.5 but the charges might make them more expensive for you. Largely depends on the size of your mortgage [size does matter!!], the bigger the sum you're borrowing the less affect the charges have and vice versa - so lowest rate isn't always cheapest.
Got to do your own sums or get a broker to do them for you [see Mortgage pages on MSE site] to find out which is cheapest for you. If you can't be a***d - the Nationwide one mentioned by KTF is very competitive and has low fees.
Good hunting!!

KTF

Scooby_Man wrote:

I am looking to remortgage....

Thanks for the links - I guess arrangement/exit/legal fees are the distinguishing factor as they have to be paid upfront and can sting badly for the 1st month...

In that case then the Nationwide one is worth a close look as it has free legal fees. You just pay the arrangement fee and a one time administration charge. Whilst other lenders may have lower rates you have to pay the legal fees so this will have to be taken into account.

If you would like a copy of the spreadsheet that I have put together that can assist you with this then send me a PM.

Note that I put this spreadsheet together myself and am by no means an expert so always get advice before proceeding.

andyyorks

I've just remortgaged with Alliance and Leicester through London & Country brokers, fixed for 2 years at 4.28%. Up front fees came to £495 in total plus £25 insurance admin charge. The exit fees will be £250 if I move again in two years. Legals and valuation were free.

I'm quite happy with this but who knows what's going to happen to interest rates.

MortgageGenie

Scooby_Man wrote:

I am looking to remortgage....

Thanks for the links - I guess arrangement/exit/legal fees are the distinguishing factor as they have to be paid upfront and can sting badly for the 1st month...

From 11th Aug Nationwide will allow both the the £389 booking fee & £95 arrangement fee to be added to the loan. You will end up pay interest on then for the term of your mortgage though.

As mentioned by Ian, the size of your mortgage is a crucial factor in determining which scheme is the most competitive.