A friend was recently offered 2.3% on a 10yr fix which sounded pretty good to me. Not as good as my base +49bps of course...
Not sure if this has been posted before but was just interested in the best mortgage deals that folk have been offered. I am about to sign for a new 1.94% deal fixed for 5 years with zero fees. I'm moving from a 2% above base rate tracker.
A friend was recently offered 2.3% on a 10yr fix which sounded pretty good to me. Not as good as my base +49bps of course...
Took a 5 year no fee fix back in June at 1.99%, when my old 4yr fix at 2.99% ended
You can get 2 yr fixes at less than 1% now, but thought it a bit risky to have a deal ending just as Brexit hits
Bank of England are likely to increase rates sooner than later too which you should factor into your decision
There are some good rates around at the moment. I got a 3 year fix at 1.44% with offset account on my main residence (Scottish widows) and a 5 year fix at 2.1% on my BTL (Leeds BS).
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10 year fixed, no early repayment penalties, no fees, free life insurance... 0.7%
Japan, home of the negative interest rate policy
Lol. Yes, I did move and increase borrowing about 7 years ago and kept the rate. I was allowed a maximum of 6 months gap between selling and buying and just about managed that. Rented a place between owning the 2 properties as I wanted to keep the transactions chain-free. Of course the extra borrowing wasn't at the same rate as it was no longer available but still pretty good at 1.24% or 1.49% above base (can't remember exactly). So my mortgage is in 2 parts. It's with HSBC and they still have some pretty good rates. Btw I have remortgaged the part with 'higher' rate with them 2-3 times to improve the rate as the equity in my house increased, reducing LTV over time. That enabled me to access better rates.
Interesting that this thread started now. I signed up for a 5 year fix @1.99% no fees with Santander last week. my 3 year deal with them was due to finish in December and they wrote to me asking if I would like to change to a new deal now instead of waiting.
My concerns were the same as echoed by other members ( ineviteble Interest rate rises, Brexit effect etc) and whilst Santander have always been pretty fair with me, I know that they won't hesitate
to put rates up as soon as they move, rather than the slowness that all lendres adopt when it comes to lowering them
John
I wouldn’t say interest rate increases are inevitable by a long shot guys. For what it’s worth I don’t think we will be ‘leaving’ the EU in the way most people envisaged either.
I used John Charcol recently to get me a very Specialized mortgage for a debt reconsolidation (we are talking 6 figure debts due to huge medical bills I paid a couple of years ago) and not only did they get me a lender when my solo attempts were futile (as lenders didn’t differentiate between someone paying £130k of emergency life and death medical bills vs someone p*ssing it up the wall) but also got a 3 year fix at 1.44% on such a specialised loan. I can’t recommend them enough.
I’m now paying £5k less a month in outgoings, sure I have a bigger mortgage but the property has thankfully done very well over the past few years and so it’s basically ‘cost’ me 2 years of equity increases in return for being short term debt free.
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I've taken an almost opposite view. I went for the lowest rate I could find which inevitably was a 2 year fixed. I'm currently overpaying, not by much, I pay 22% more each month than I need to.
My view is this brings in the term, but allows me "lower" payments should I need the extra cash. By lower I means dropping to the set repayment. This will have no impact my credit profile or need to ask the bank as I'm only paying what was set out.
I also used financial models. I came to the conclusion that a mortgage rate would need to be higher than 3% in years 3-5 to undo the overpayments on the low rate in the first 2 years. I don't think the rates will be that high.
Sounds very similar to mine except I managed to extend 7yrs ago at the same rate. Also very useful being able to borrow back up to the initial amount at any time to refinance anything else - means I can effectively borrow now at the same rate.
If I didn't have this I'd be going for a low 10yr fix to minimise my risk, we're not playing interest rate top trumps after all.