10 year fixed rate mortgage 3.84%, up to 75% LTV, no product fees, N&P
758°Expired

10 year fixed rate mortgage 3.84%, up to 75% LTV, no product fees, N&P

100
Found 30th Dec 2014
With interest rates expected to increase in the next couple of years (and mortgages rates likely to rise in anticipation) now might be a good time to consider moving to a fixed rate mortgage.

Norwich and Peterborough Building Society are offering a 10 year fixed rate mortgage at 3.84% for loans up to 75% of the property value. There are no product fees, no valuation fees and free legal fees for remortgages. Available for loans over £25,000.

Overpayments up to 10% of the initial loan amount can be made each year without incurring any charge. Underpayments and payment holidays are allowed against overpayments.

Early repayment changes are 7% of the remaining loan to the end of year 3 then reduce by 1% per year. The loan is transferable if you move house in England and Wales.

100 Comments

Paid mine off at the end of September but be sure to take into account the early repayment fees.

intresting

Bit of a gamble but I could see this working out well in 5 years time, just make sure it's portable.

Banned

except interest rates likely won't rise - it's rhetoric - we are only 5 years down the Japanese road that they started back in 1996

No point, better off going for a tracker at lower rate and when interest rates start to rise, a tracker lets you pay more off (if you can) or just switch to another deal at the time.

It seems to be portable so that's very tempting.

No one knows what will happen to interest rates. Many people can guess, but it's a gamble.
Bear in mind that by the time tracker rates go up, the same cheap fixed rates won't be available either.
If you need certainty then you could do worse than consider this.

No interest rate rises until at least 2016

Only Lend to borrowers in England & Wales

All I'd say is, this rate isn't much more than a normal 5yr fixed and considering after 5yrs youd have another product fee etc I think this is a good deal. If the rates didn't increase you'd only lose out slightly but if they go up you'll win massively.

Mortgages are a scam, mortgages are a scam, mortgages are a scam. Oh **** ive got a mortgage.

fruityloops

Paid mine off at the end of September but be sure to take into account … Paid mine off at the end of September but be sure to take into account the early repayment fees.



Excellent advice. This is not for you if there is a good chance you sell your property well before the 10 year duration.

I need to get out more I have never heard of Norwich and Peterborough building society oO

donslibi

No point, better off going for a tracker at lower rate and when interest … No point, better off going for a tracker at lower rate and when interest rates start to rise, a tracker lets you pay more off (if you can) or just switch to another deal at the time.



A bit simplistic but the general idea is correct. However, you may have to move sooner than you think, if you want to catch that train.

I have a 25yr mortgage currently at 1.49%

Too many people on here looking at saving 50p of a kg of sprouts rather than getting their mortgage, loan, and car finances in order.

#EnoughSaid

binda

Mortgages are a scam, mortgages are a scam, mortgages are a scam. Oh **** … Mortgages are a scam, mortgages are a scam, mortgages are a scam. Oh **** ive got a mortgage.



It is 30th of December and you still have a hangover mate? oO

dsuk

I have a 25yr mortgage currently at 1.49%Too many people on here looking … I have a 25yr mortgage currently at 1.49%Too many people on here looking at saving 50p of a kg of sprouts rather than getting their mortgage, loan, and car finances in order.#EnoughSaid



Saving the 50ps here and there allow people to have enough in the bank to pay off their mortgages, loans, car finance etc.... hence the concept of this site - buy something for less then you would normally and save £ to allow you to use it elsewhere.

SunshineStacey

I need to get out more I have never heard of Norwich and Peterborough … I need to get out more I have never heard of Norwich and Peterborough building society oO



Too many holidays

phillyboy

No interest rate rises until at least 2016



That is the betting given Bank of England's Governor stating that interest rates won't rise until unemployment falls below 7%. Read this.

dsuk

I have a 25yr mortgage currently at 1.49%Too many people on here looking … I have a 25yr mortgage currently at 1.49%Too many people on here looking at saving 50p of a kg of sprouts rather than getting their mortgage, loan, and car finances in order.#EnoughSaid



very true. ..

Get the big items in order first. ... Then worry about your 50p here and there

dsuk

I have a 25yr mortgage currently at 1.49%Too many people on here looking … I have a 25yr mortgage currently at 1.49%Too many people on here looking at saving 50p of a kg of sprouts rather than getting their mortgage, loan, and car finances in order.#EnoughSaid



presumably a tracker as opposed to fixed?

...except unemployment has tumbled so quickly it is now at 7.4% making a rise in rates possible next year...

trevordavies

except interest rates likely won't rise - it's rhetoric - we are only 5 … except interest rates likely won't rise - it's rhetoric - we are only 5 years down the Japanese road that they started back in 1996



Bit of a gamble. We are nothing like the Japanese situation.

Rates will rise sooner than you believe - don't you believe they won't! Although they will hopefully only rise slowly. Generally rates averaged around 5% for 10yrs. So this actually looks like a good deal - in 5 years time those on this deal will be beaming with a smug smug smile

h2yprboy

All I'd say is, this rate isn't much more than a normal 5yr fixed and … All I'd say is, this rate isn't much more than a normal 5yr fixed and considering after 5yrs youd have another product fee etc I think this is a good deal. If the rates didn't increase you'd only lose out slightly but if they go up you'll win massively.

If you win massively, I wonder then who would loose massively? I suspect the risk is passed onto elsewhere in hedging, usually the risk end up on savers or on pension funds in lower returns. Over the years I learnt that these financial products turnover the business and like taxation its effect is to take money from Peter to pay Paul with no net gain to UK PLC. The downside is to employ people in administrative jobs churning over the same business. In financial products the net gain is always for the provider of money. This is the same with energy companies and telephone companies as indeed the rail fares. Whereas before there was largely just two fares with zero staff deployed to managed this simple pricing there are a myriad of fares now with promotions employing an army of marketeers, prices, competitive analysts, reward schemes, mail shots.

5-year fixes can be had for around 2.75% @ an LTV of 75%, although fees do start at around £1,000. It all depends upon the size of your mortgage & where you think rates are headed. If you borrow £100,000, you'd save the £1,000 up-front but then pay an additional £9,500 (approx.) in interest over the 10 years of the fix. If rates rise during this time (which I'm sure they will - the question is, how far?) then you may well be sitting pretty & could save yourself a small fortune.

The government / BoE will keep rates as low as they can for as long as they can, but ultimately the money markets will decide. Remember, mortgage rates can & will go up or down independent of the base rate. For those who can afford a rate at 3.84% now & need the peace of mind, I think it's an excellent deal. Others may prefer to chance a shorter fix with a lower rate & pay back more of the capital (my preferred choice). Haven't voted either way. What I will say is that given where we are in the interest rate cycle & with rates as low as they are, people should (IMHO) be fixing for 5 years (or longer, depending upon their circumstances).

what goes around comes around...Many on here like myself will be in the age group when i first got a mortgage ...Interest rates were near 15% ......and we managed ...Just..... It benefitted us big time when they came down only for the Crash in 2008 and now all your Utilities,food,Council tax etc have risen dramatically......So its a swings and roundabout thing really........MY advice for what its worth ........Get some REALLY good advice before you jump into something without knowing what it really means.......and a 50p saving on something can be a real boon to someone or a family that is struggling ............Every little helps as Tesco say's ......Thats why the wifes off to Aldi's ...................;)

To rate this just on the deal itself, its a good offer.

phillyboy

No interest rate rises until at least 2016



Prove it. Is it that just an opinion?

Become like Amazon esp if you are a high rate tax payer. Offset, offset and offset some more. Say no to saving rates of <4%. If you have the appetite look at a share ISA.

Good deal for those not already on a cheap deal who are looking for fixed rate. If I wasn't already on a very cheap lifetime tracker then this would definitely get consideration.

Don't really see much value in 2-3 year fixes as rates are unlikely to rise far/quickly enough to make them worthwhile, but there is a reasonable chance of a sub 3.84% rate with no fees beating the market for a few years out of a 10 year term. [A key consideration with fixes should not just be "will rates rise above this level", but also at what point, i.e. there is no point paying over the odds for years on a fixed product if you only get a short period of time where it saves you money.

By means of an example, let’s say the best tracker rates rise to 6%. “Fantastic!”, I hear you say, “My fixed 3.84% deal is saving me a fortune”. But the reality is it depends how long it takes to hit those sort of level, if you’ve had a pay a premium for that fixed rate for a number of years then it may not work out cheaper overall. As I say though, a 10 year deal seems much more appealing in this regard.

dsuk

I have a 25yr mortgage currently at 1.49%Too many people on here looking … I have a 25yr mortgage currently at 1.49%Too many people on here looking at saving 50p of a kg of sprouts rather than getting their mortgage, loan, and car finances in order.#EnoughSaid



Which ould rise to paying 7% in 5 years time....15% in 15 years time....so not a good comparision. Sure I dont think that wil happen and you may well feel happy knowing if rates start to rise you can switch into a fix if you so wish....but this is a stonking deal for those that want peace of mind and know what they are paying for re next 10 years.

Rates may rise sooner rather than later OR be stagnet for the next 10 years...what we do know is they wont go much lower and the likes of this fix havent been seen before

Tempted by this deal. My fixed rate ended a few years ago and now am one base rate +2% so rates would have to go up by 1.8% for me to start saving???but over 10 years I suppose that's likly, what does the rate revert to after the fixed term ends?

I guess the million dollar question is how fast are interest rates likly to raise.....

doritos

To rate this just on the deal itself, its a good offer.

It is a good offer but if you used a calculator and assumed that interest rates go up by 1 to 2 % in the coming years plus exit fees then it is good offer so long as you don't exit before 5 or 6 years approximately. Say if you split with your partner in year 5 the interest total is 3.84 plus 5= 8.84% for this year 5. Read the small print is my advice on how the rates are applied and the exit terms carefully. For a 100k loan outstanding the amount of interests in year 5 to exit is £9000 approx. If I remembered correctly from years ago, building societies interest rate was applied as a whole in the beginning of year rather than the daily balance. Lastly as well as speculating on what happens to rates think of your job security and financial world in coming years in relation to affordability of exit fees. Use a calculator to write down some results rather than guessing at this risks and gains.
Edited by: "splender" 30th Dec 2014

interest rates would have to rise alot, im on a tracked 0.95% above base rate. so currently 1.45%

When you are porting a mortgage it is treated as a new mortgage application, it's only the T&Cs of the product that are transferred. If you want to move to a property that N&P don't like, or your income situation has changed and they aren't prepared to lend you the money that you need (which may be the amount that you still owe) then you are stuffed.

Be careful, get proper advice, I don't think things like this should be on HUKD.

i fixed mine for 10yrs maybe 5 years ago now - still at 4k to get out of it

I should point out that Mark Carney has said that interest rates will remain low all the time inflation is low. The 7% unemployment figure is a collar not a trigger and is now a complete irrelevance as it will be reached within 2 or 3 months. My guess is that interest rates will not rise in 2014 and may possibly start to creep up in 2015. It all depends on inflation.

hmm, I am on 2.5% lifetime tracker now. £90k left to pay which is about 60% of property value. and 9 years left only. this offer sounds like big peace of mind..

We've not regretted our ten year mortgage, I've occasionally wondered if we'd have been better saving the £100 a month but with DH being newly self employed less than two years ago, and even getting a mortgage was tricky for us the peace of mind is priceless as we don't have to think about it for years by which point we will have business accounts to show.

dsuk

I have a 25yr mortgage currently at 1.49%Too many people on here looking … I have a 25yr mortgage currently at 1.49%Too many people on here looking at saving 50p of a kg of sprouts rather than getting their mortgage, loan, and car finances in order.#EnoughSaid



where from, still available??!

would be great if a btl interest only mortgage

What if your property rises in value by say £30K in 3 years time..
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