Mortgage Interest Rates

Caporegime
OP
Joined
21 Jun 2006
Posts
38,372
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.

I just checked their website and with 40% LTV the best I can see is


1.54%


Base rate +1.44%
 
Soldato
Joined
9 Nov 2008
Posts
7,080
I just checked their website and with 40% LTV the best I can see is


1.54%


Base rate +1.44%

That's great, I'm not sure what relevance that has to my post? I'm 1 year into my 2 year tracker which is BoE+0.69% with no fees, LTV will have been the lowest band (whatever that is these days).
 
Soldato
Joined
25 Mar 2004
Posts
15,686
Location
Fareham
That's great, I'm not sure what relevance that has to my post? I'm 1 year into my 2 year tracker which is BoE+0.69% with no fees, LTV will have been the lowest band (whatever that is these days).

That's a really good rate, got onto my 2 year no fee tracker with Nationwide September last year at base rate + 1.09%, that was the best rate they were offering at the time and I am on the best LTV for rates.

The recent drop is saving me about £70 a month at the moment :p
 
Soldato
Joined
25 Aug 2006
Posts
6,337
5 year fixed mortgage - 1.35% - £999 booking fee - 60% LTV @ Lloyds Bank

5 year fixed rate 1.35% rate with 60% LTV
£999 booking fee
Annual overpayment allowance 10%
Early Repayment charges - Tiered 5% year 1, 4% year 2, 3% year 3, 2% year 4, 1% year 5
Free valuation and standard legal fees paid
Extra £200 cashback for Lloyds customers switching lenders
 
Associate
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7 Nov 2012
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1,611
Location
UK
At least the ERC tapers off. Before I went with my tracker I was looking at fixes and many, if not most, were fixed ERC!
 
Man of Honour
Joined
25 Oct 2002
Posts
31,706
Location
Hampshire
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!
It's a lot more nuanced than people realise, so it's important to keep bringing this up. Factors to consider is stuff like:

-How much are you borrowing? The more you borrow, the less important fees become relative to interest rate
-How long is the fixed term / ERC in effect? Again, the longer the term, the less important fees become. Or to bring it to life a bit more, with a really short term (2 years or less), you don't really want to be paying a big fee unless it absolutely makes sense, only to then potentially have to stump up another big fee two years later
-Pay particular attention to not only how much you pay over the mortgage term, but also how much balance is left at the end of the term. This is the big one that I see people overlook, they "do the sums" to figure out that over n years lock-in period product ABC has lower total payments than product XYZ, but don't consider that product ABC might leave them owing more money at the end of the lock-in period than product XYZ. They just assume it's neutral whereas dependent on the rates there will be an imbalance.
 
Soldato
Joined
1 Dec 2011
Posts
21,226
Location
SW3
My 2 year fixed deal comes to an end in May 2021, currently on a 2.8% deal.

I have started the remortgage fiasco today so i should hear something back on Monday about what rate i can get.
 
Caporegime
OP
Joined
21 Jun 2006
Posts
38,372
It’s the actual opposite. ‘Pound up as negative rates less likely’.

So they asked the banks of they would be ready if it were to happen for a laugh?

Nobody knows. That's how it works. We won't know what way they will go until it happens.

With all the job losses. House price increases. I can't see them being increased. It's a the likley scenario I can't see them going up.
 
Caporegime
Joined
21 Oct 2002
Posts
26,251
Location
Here
But the people who set rates have said negative rates are less likely ?

didn’t you think rates were only going up so fixed ?

I’m on 0.79% so don’t mind another cut
 
Last edited:
Soldato
Joined
4 May 2007
Posts
9,347
Location
West Midlands
My 2 year fixed deal comes to an end in May 2021, currently on a 2.8% deal.

I have started the remortgage fiasco today so i should hear something back on Monday about what rate i can get.

The quickest way to get an idea is look at the money saving expert mortgage calculator. 2.8% sounds pretty bad but depends on LTV ratio.
 
Caporegime
OP
Joined
21 Jun 2006
Posts
38,372
But the people who set rates have said negative rates are less likely ?

didn’t you think rates were only going up so fixed ?

I’m on 0.79% so don’t mind another cut

No my deal is nearly ending i can apply for a new deal on the first of April.

I need them to either go down before then or if they do go up I hope they go up after I've got my new deal sorted.

So the sooner the better.
 
Soldato
Joined
30 Sep 2005
Posts
16,526
Santander 60% LTV is 1.41% 5yr fixed at the minute.

Looking at that myself. Think I'm going to port my mortgage to a new property and take out a new mortgage to run alongside it.
 
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