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Mortgage Interest Rates

Discussion in 'Home and Garden' started by Psycho Sonny, 11 Mar 2020.

  1. Psycho Sonny

    Caporegime

    Joined: 21 Jun 2006

    Posts: 36,484

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


    1.54%


    Base rate +1.44%
     
  2. Peerzy

    Soldato

    Joined: 9 Nov 2008

    Posts: 6,885

    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).
     
  3. HungryHippos

    Sgarrista

    Joined: 25 Mar 2004

    Posts: 9,472

    Location: Fareham

    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
     
  4. Peerzy

    Soldato

    Joined: 9 Nov 2008

    Posts: 6,885

    I couldn't believe my luck, we must have moved at just the right time as I've not seen a better deal since. My yearly mortgage interest is now less than 1 months council tax payment!
     
  5. ivrytwr3

    Mobster

    Joined: 25 Aug 2006

    Posts: 4,423

    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
     
  6. BadMojo

    Wise Guy

    Joined: 7 Nov 2012

    Posts: 1,462

    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!
     
  7. HangTime

    Man of Honour

    Joined: 25 Oct 2002

    Posts: 28,879

    Location: Hampshire

    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.
     
  8. Psycho Sonny

    Caporegime

    Joined: 21 Jun 2006

    Posts: 36,484

    Negative rates incoming.

    Hopefully get a 1% mortgage within the next few months
     
  9. Simon

    Capodecina

    Joined: 21 Oct 2002

    Posts: 24,058

    Location: Berks / Moscow

  10. Psycho Sonny

    Caporegime

    Joined: 21 Jun 2006

    Posts: 36,484

  11. Simon

    Capodecina

    Joined: 21 Oct 2002

    Posts: 24,058

    Location: Berks / Moscow

    It’s the actual opposite. ‘Pound up as negative rates less likely’.
     
  12. Captain

    Suspended

    Joined: 1 Dec 2011

    Posts: 19,440

    Location:

    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.
     
  13. Psycho Sonny

    Caporegime

    Joined: 21 Jun 2006

    Posts: 36,484

    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.
     
  14. Simon

    Capodecina

    Joined: 21 Oct 2002

    Posts: 24,058

    Location: Berks / Moscow

    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: 5 Feb 2021
  15. Buffman

    Sgarrista

    Joined: 4 May 2007

    Posts: 8,011

    Location: West Midlands

    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.
     
  16. Psycho Sonny

    Caporegime

    Joined: 21 Jun 2006

    Posts: 36,484

    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.
     
  17. Captain

    Suspended

    Joined: 1 Dec 2011

    Posts: 19,440

    Location:

    It was in May 2019, 2.8% was the lowest interest rate I could get without putting almost 20k deposit down.
     
  18. TheOracle

    Capodecina

    Joined: 30 Sep 2005

    Posts: 13,439

    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.
     
  19. Psycho Sonny

    Caporegime

    Joined: 21 Jun 2006

    Posts: 36,484

    Nationwide is 1.39%
     
  20. TheOracle

    Capodecina

    Joined: 30 Sep 2005

    Posts: 13,439

    Changing all the time

    Just checked and it's now 1.34