Mortgage Interest Rates

Man of Honour
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Did ours today online, the process takes about 10 minutes and then it's just a matter of accepting documents online too, which is another 5.

Given what I do for a job you would be mistaken if you thought i am not also old school! For some reason my mortgage up until this time has always been in the branch. I dunno why really didn't even think of doing it online. Although they did ask me to upload a pay slip.
 
Soldato
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I also decided to double check my rates as the renewal was coming up at the end of July and I remembered this thread. I was previously on 2 year fixed at a rate of 1.75% and had I just left it the variable rate with the halifax would have taken over and jumped it up to 3.5 ish percent which I thought was a bit silly. Enquired over the phone with Halifax on Wednesday and went through the houror so of questioning and they offered me 2 years at 1.45% or 5 years at 1.46%. Took the 5 year deal and its all done and dusted with the paperwork turning up today, just two days after I asked them the question on the phone. Pretty good going really and I guess the rate is fairly decent.
How did you get such a good rate? The ones I'm looking at are 1.84%.
 
Man of Honour
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How did you get such a good rate? The ones I'm looking at are 1.84%.

I just called them up. Talked to the fella and asked him what he could do. those are the rates he came back with. Property is worth approx 500k, 245k ish left. So approx 50% equity. Not sure how much a difference any of that makes but might be useful to gauge against. Halifax had our mortgage previously as well at the 1.75% rate so ideally I wanted to stay to make it easy.
 
Soldato
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I bank with Nationwide, thought I would go with them for a mortgage. They offered me 3% on a 5 year fixed. Went with a broker, got 1.69% for a 5 year fixed (Agreed October 2017 IIRC)
 
Associate
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Is it better at the moment to go 5 year fix rate, I have seem some good deals or lock in for 10 year fix rate and gamble rates will rise in 5 years time ? 10 year fix could been paying extra 20k at the current rates.
 
Soldato
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Is it better at the moment to go 5 year fix rate, I have seem some good deals or lock in for 10 year fix rate and gamble rates will rise in 5 years time ? 10 year fix could been paying extra 20k at the current rates.
I have just got an AIP, me and my partner are first time buyers. We have been looking at going for a 5 year, we have been offered a rate of 1.9%.
 
Associate
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Don't forget it's not just the headline rates but also fees involved have to be taken into account.
Yeah I got plenty of fees to pay :rolleyes: , 5 year fix is about £650 a month, saves me £50 a month plus I get 20k for renovations. 10 year fix is £725 but I only get about £5k for house renovations, so it not even worth paying the 4k ERC IMO.

I suppose the sensible thing would be to shower at my parents when the bath snaps in half and not to borrow any extra money.
 
Soldato
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Yeah I got plenty of fees to pay :rolleyes: , 5 year fix is about £650 a month, saves me £50 a month plus I get 20k for renovations. 10 year fix is £725 but I only get about £5k for house renovations, so it not even worth paying the 4k ERC IMO.

I suppose the sensible thing would be to shower at my parents when the bath snaps in half and not to borrow any extra money.

Sorry I meant the product fees and stuff they sucker you in with, saying like 1.4% but you have to pay £2K product fees or whatever.

Personally if I was fixing now I'd be considering a good 5 year fix, they seem to be coming in at decent prices recently, base rates could go negative and could see even cheaper mortgages as a result, but they are already at an all time low really. 10 years is a long way away.

Just make sure if you are taking out a mortgage you are not paying high product fees with it, the product fees make sense only when you have a large mortgage balance (around £200K or so). Further, the fees are similar if you are taking out a 5 year or a 2 year product, so paying them once every 5 years is better than once every 2 years.

In regards to borrowing on the mortgage to do renovations, it's a good idea but make sure you keep a good bit of equity in the house as well. The breakpoints for the fees are normally every 5% or so, capping at 40% equity (which is 60% LTV).
 
Soldato
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Don’t forget that once your fixed period is up, you’ll be able to remortgage. You’ll likely get better rates when you do, as your LTV will be lower since you’ve been building equity. I wouldn’t go for a 10 year fix, that’s a long time. You might be able to pay half your mortgage off in that time.

See what rates you can get with the various fixed terms and do some calculations. As has been mentioned, definitely watch out for those initial fees. Sometimes they can be £1999.
 
Soldato
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Some mortgage deals over the last week to give you an idea of rates:

  • 5 Year Fixed Rate RBS Mortgage - 1.21% 75% LTV - No booking fee @ Fluent Mortgages via Moneysupermarket - although some are saying it is not visible on their site and dependent who you call depends whether you get this fantastic rate.

  • Nationwide 5 years fixed rate mortgage - 1.49% - £999 booking fee - 75% LTV @ Nationwide Building Society (Existing customers)

  • Barclays - 2 Year Fixed Mortgage 1.45% £299 Fee

  • Barclays 7 year fixed mortgage - 1.69% - £999 booking fee - 60% LTV @ Barclays

  • HSBC 5 year fixed mortgage - 1.39% - £999 booking fee - 60% LTV @ HSBC

  • 2 years fixed mortgage 1.19% with £999 product fee 60% LTV existing customers @ Nationwide

  • 2 Year Fixed 60% LTV Repayment Mortgage 1.34% ( plus £490 Booking Fee) @ First Direct

  • First Direct - 1.59% 5 Year Fixed 75% LTV Repayment Mortgage (+£490 fee)
I recently got a letter through from Santander stating that they have automatically adjusted my mortgage rate (on SVR) to 0.84%! 8 years left on my mortgage, but overpaying to bring it down to 3.5/4 years - so not sure if to fix now or remain on the SVR.
 
Soldato
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Sorry I meant the product fees and stuff they sucker you in with, saying like 1.4% but you have to pay £2K product fees or whatever.

Should be able to work out if the fee costs make sense. Calculate the payments across the term with and without the fee. It usually works out cheaper but just means stumping up a big cost at the start.
 
Associate
Joined
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Some mortgage deals over the last week to give you an idea of rates:

  • 5 Year Fixed Rate RBS Mortgage - 1.21% 75% LTV - No booking fee @ Fluent Mortgages via Moneysupermarket - although some are saying it is not visible on their site and dependent who you call depends whether you get this fantastic rate.

  • Nationwide 5 years fixed rate mortgage - 1.49% - £999 booking fee - 75% LTV @ Nationwide Building Society (Existing customers)

  • Barclays - 2 Year Fixed Mortgage 1.45% £299 Fee

  • Barclays 7 year fixed mortgage - 1.69% - £999 booking fee - 60% LTV @ Barclays

  • HSBC 5 year fixed mortgage - 1.39% - £999 booking fee - 60% LTV @ HSBC

  • 2 years fixed mortgage 1.19% with £999 product fee 60% LTV existing customers @ Nationwide

  • 2 Year Fixed 60% LTV Repayment Mortgage 1.34% ( plus £490 Booking Fee) @ First Direct

  • First Direct - 1.59% 5 Year Fixed 75% LTV Repayment Mortgage (+£490 fee)
I recently got a letter through from Santander stating that they have automatically adjusted my mortgage rate (on SVR) to 0.84%! 8 years left on my mortgage, but overpaying to bring it down to 3.5/4 years - so not sure if to fix now or remain on the SVR.

Thanks for this, I had alook but most of the LTV are too low, I m at around 75-80%.

Anyone know if you are able to remortgage a sub account with Halifax when it expires or do you have to do whole lot at once ? Just wanting to see if I could borrow less money on just the sub account in September and save a 4k ERC for the main account that expires Dec 21.
 
Soldato
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Don't forget it's not just the headline rates but also fees involved have to be taken into account.
Yeah I have done the sums, from the guy we have been speaking to even if we take the deal with a £999 fee its still cheaper through the first 5 years. It is easy to just see the headline rate though and not consider the fees!
 
Caporegime
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Dominating rooms with symmetry
Only been in our house for 2 years but we've just reduced our monthly mortgage payment massively, at 85% LTV it's hard to get some of the crazy low rates seen in this thread but Lloyd's have price matched the best ones a broker could find for us, no fees either.

Works out about £125 a month better off :eek: will probably just stick that into overpayments.
 
Soldato
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Only been in our house for 2 years but we've just reduced our monthly mortgage payment massively, at 85% LTV it's hard to get some of the crazy low rates seen in this thread but Lloyd's have price matched the best ones a broker could find for us, no fees either.

Works out about £125 a month better off :eek: will probably just stick that into overpayments.

Or, send it to me! :D
 
Caporegime
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Here
I see Nationwide tracker rates have also dropped from the base rate plus 1.59% to the base rate plus 1.44%. I'll switch online...
Depends on the LTV of course. Which LTV is this. Sticking with Nationwide is usually the best deal though and no faffing about with all the application stuff with a new lender
 
Soldato
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Hampshire
Yeah I've switched loads of times over the past few years. Just a shame they no longer offer cashback for switching, especially when it's to a lower rate! I'm at approx 41%.
 
Soldato
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9 Nov 2008
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7,081
My NW rate has just dropped to 0.79% (tracker), it feels odd paying so little interest on the mortgage but a nice feeling. Nationwide have always seemed to have the best deal when I was approaching the end of my existing one so I've never actually needed to go with anyone else. As others have said above 'switching' from one NW product to another is super easy, takes about 5 minutes online and they even let me switch 3 months early on a fix once (all online, automated) which saved around £750 of interest due to the rate going down.
 
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