Santander online rate 1.09%

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aaronward
aaronward Posts: 8 Forumite
in Mortgages & endowments
nyone taken out the the 1.09% online special rate at Santander? For an LTV of 75% you can get a rate of 1.09%. Deal is fixed for 2 years and is only applicable online. Fees are around 1k but I don’t think there is anything else in the market at the moment that can beat this. Any one else got a better rate?
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  • ACG
    ACG Posts: 23,727 Forumite
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    It will depend on the size of the Mortgage.
    People often get caught up in the rate, but the fees can have a big impact.

    I remember doing a Mortgage with Barclays a year or 2 back. It was for about £15k and came with cashback of £750 or a grand. The rate was pretty high, but because of the lack of fees and cashback and a small balance, Barclays were not a million miles off paying the customer to have the Mortgage.

    Look at the whole deal, dont chase rates.
    I am a Mortgage Adviser
    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.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    aaronward wrote: »
    nyone taken out the the 1.09% online special rate at Santander? For an LTV of 75% you can get a rate of 1.09%. Deal is fixed for 2 years and is only applicable online. Fees are around 1k but I don’t think there is anything else in the market at the moment that can beat this. Any one else got a better rate?

    looking they have 3 rate/fee combos

    1.09% £1499 fee
    1.44% £999 fee
    1.69% £0 fee

    using the add fees make the payment the same method

    for a 2y fix 25y term loan the break even on the £0-£1,499 fee is £130,400.
    The 1.44% will cost more than both of them
  • Brock_and_Roll
    Brock_and_Roll Posts: 1,207 Forumite
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    Jeez, they are practically handing out free money!


    After costs, this must be a loss-leader for Santander. If it were not for the tax and the fact that I am a sensible old banker, I almost feel like taking out a £500k mortgage and buying £500k of IMPS or Shell stock [yielding 5%+]
  • aaronward
    aaronward Posts: 8 Forumite
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    getmore4less wrote: »
    looking they have 3 rate/fee combos

    1.09% £1499 fee
    1.44% £999 fee
    1.69% £0 fee

    using the add fees make the payment the same method

    for a 2y fix 25y term loan the break even on the £0-£1,499 fee is £130,400.
    The 1.44% will cost more than both of them


    Sorry not sure what you mean by the break even?
  • aaronward
    aaronward Posts: 8 Forumite
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    ACG wrote: »
    It will depend on the size of the Mortgage.
    People often get caught up in the rate, but the fees can have a big impact.

    I remember doing a Mortgage with Barclays a year or 2 back. It was for about £15k and came with cashback of £750 or a grand. The rate was pretty high, but because of the lack of fees and cashback and a small balance, Barclays were not a million miles off paying the customer to have the Mortgage.

    Look at the whole deal, dont chase rates.

    Looking at borrowing 290k over 35 years, is this still the best deal?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Brock_and_Roll wrote: »
    After costs, this must be a loss-leader for Santander. If it were not for the tax and the fact that I am a sensible old banker, I almost feel like taking out a £500k mortgage and buying £500k of IMPS or Shell stock [yielding 5%+]

    Why is Shell yielding 5% is the other question you need to be asking yourself.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    aaronward wrote: »
    Fees are around 1k but I don’t think there is anything else in the market at the moment that can beat this. Any one else got a better rate?

    You also need to consider what you will doing in the future. Remortgaging at the end of every product term will incur considerable cost. As the mortgage debt reduces the viability of switching lenders reduces greatly.
  • ACG
    ACG Posts: 23,727 Forumite
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    aaronward wrote: »
    Looking at borrowing 290k over 35 years, is this still the best deal?

    I have no idea, you would need to check yourself or employ a broker to do it on your behalf. But because it is a larger mortgage, the fee is an easier hit to take - but without researching I have no idea if it is the best or not.
    I am a Mortgage Adviser
    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.
  • YHM
    YHM Posts: 650 Forumite
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    Yes it is a good rate....not sure how the FCA would see incentivising Execution Only transactions mind....
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, 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
  • dimbo61
    dimbo61 Posts: 13,716 Forumite
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    This is a big/huge mortgage and HUGE decision /commitment so why not employ a mortgage broker.
    To get that size mortgage you must earn a considerable income and have a good deposit.
    Will you be using a solicitor and a RICS surveyor ?
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