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5 year fee-free fixed mortgage 1.99% @ Coventry BS (50% LTV)
5 year fee-free fixed mortgage 1.99% @ Coventry BS (50% LTV)

5 year fee-free fixed mortgage 1.99% @ Coventry BS (50% LTV)

This is the same rate as the First Direct and HSBC deals but has no associated fees.

However, it requires a 50% LTV so only suited to those with big deposits or plenty of equity in their homes.

There's also a 1.89% 5 year fix with a £999 fee but this would require a mortgage in excess of £200,000 to be the better choice.

Another interesting product is the 1.99% fixed rate to 31.12.23 with a £999 fee - a fix of a little over 7 years.

67 Comments

Original Poster

Some people prefer longer fixes such as the fee-free 2.79% 10-year fix posted below:

2.79% 10-year Fix

Personally, I prefer the 0.8% lower 5-year fix and using the 0.8% as overpayments. That way, at no extra cost, you will have paid off 4% (0.8 * 5) of your mortgage balance over the five years. I'd be very surprised if you ended up worse off when remortgaging to another 5-year fix in 2021.

Using overly simplified maths to make it easier to understand (the actual figures will vary slightly depending on term left to run), a 5-year fix in 2021 would need to cost over 3.6% to make the 10 year fixed rate option pay off - basically, the 2.79% you'd be paying on the 10-year fix plus the 0.8% extra you paid during years 1 through 5. I believe 5 year fixes will cost significantly less than 3.6% in 2021.

Does anyone know the best deals for a 75% LTV?

Original Poster

robinscp1979

Does anyone know the best deals for a 75% LTV?



That depends on whether you're looking for a fixed, variable or tracker rate, how much of a mortgage you are looking for and whether your personal circumstances deem you acceptable to the various lenders.

BOE is likely to drop interest rate again very soon. Do you think it would be worth waiting as banks may follow downwards with mortgage rates?

I was accepted on Coventry's five year fix at 2.24% (65% LTV), which has now dropped to 2.04% (as of yesterday), but think it makes sense to go for a tracker atm.

Given that BOE rate is likely to go down again, before going back up, and the fact that my mortgage has already been approved by Coventry, I decided to stick with them, and think the following is pretty good atm instead:

+1.35% Bank Base Rate Flexx Tracker to 30.09.18

A +1.35% Base Rate Flexx Tracker to 30.09.18, currently 1.60%Followed by … A +1.35% Base Rate Flexx Tracker to 30.09.18, currently 1.60%Followed by Standard Variable Rate to 30.09.21, currently 4.49%.Followed by Privilege Rate for the remainder of the mortgage, currently 4.24%.


The plan is to move to a new deal (likely a fixed rate) by the end of the two years. In the meantime, I can take advantage of the BOE rate drop. I know there is a risk rates could go up in that time, but i am willing to take that risk. Even if they do go up another 0.25%, I would be better off than I would be on the 2.04% fix.

Original Poster

ghunj

BOE is likely to drop interest rate again very soon. Do you think it … BOE is likely to drop interest rate again very soon. Do you think it would be worth waiting as banks may follow downwards with mortgage rates?



It depends on what rate you're on now or, if you don't have a mortgage yet, whether you have a house in mind that you'd like to purchase.

The widespread opinion among economists is that rates will drop in December to 0.1%. That's only a 0.15% drop.

It's much easier to see the reasoning behind expectations of rate drops influencing your thought process during application for a mortgage when rates are dropping from 2%+ downwards. From current levels, I wouldn't let expected interest rate drops influence your decision TOO much.

Original Poster

robinscp1979

I have a really good credit rating and I am looking to rent-mortgage on a … I have a really good credit rating and I am looking to rent-mortgage on a fixed rate. I am currently on my banks variable rate and free to move. I currently owe 96k



First Direct have an excellent fee-free rate at 2.18% for 5-years for a 75% LTV.

marathonic

That depends on whether you're looking for a fixed, variable or tracker … That depends on whether you're looking for a fixed, variable or tracker rate, how much of a mortgage you are looking for and whether your personal circumstances deem you acceptable to the various lenders.



​​​I have a really good credit rating and I am looking to re-mortgage on a fixed rate. I am currently on my banks variable rate and free to move. I currently owe 96k

marathonic

Some people prefer longer fixes such as the fee-free 2.79% 10-year fix … Some people prefer longer fixes such as the fee-free 2.79% 10-year fix posted below: 2.79% 10-year FixPersonally, I prefer the 0.8% lower 5-year fix and using the 0.8% as overpayments. That way, at no extra cost, you will have paid off 4% (0.8 * 5) of your mortgage balance over the five years. I'd be very surprised if you ended up worse off when remortgaging to another 5-year fix in 2021.Using overly simplified maths to make it easier to understand (the actual figures will vary slightly depending on term left to run), a 5-year fix in 2021 would need to cost over 3.6% to make the 10 year fixed rate option pay off - basically, the 2.79% you'd be paying on the 10-year fix plus the 0.8% extra you paid during years 1 through 5. I believe 5 year fixes will cost significantly less than 3.6% in 2021.



How do the maths stack up against the Coventry BS 2.39% 10 year fix with £999 fee?

isnt the HSBC 1.79 tracker for life worth a punt though, with our assumations of the BOE rate atm?

These aholes just cut their interest rate for savers, so they can bump up their mortgage offerings? 2008 is coming again.

I have on natiowides bmr for past 3 years. currently 2.50 but I think it's going to or has gone to 2.25 with the last boe drop so not worth me changing as our mortgage is pretty small

Anyone know of the Best "Buy to Let" mortgages out there?
Thanks in advance! :-)

check Quidco and TCB for free mortgage advice and cashback

If you can hold on a month or so, I reckon they'll be even lower rates available then.
The interest rate cut is only just hitting savers, and mortgages are always slower to react.
Reckon a 1.79%/No Fee 5 year should be available in a month or so.

Has anyone got a link to the 1.99% fixed Chelsea mortgage with no fees, as I can't find it on their web site?

FTOdude170

isnt the HSBC 1.79 tracker for life worth a punt though, with our … isnt the HSBC 1.79 tracker for life worth a punt though, with our assumations of the BOE rate atm?


The advice used to be to get a tracker when rates were high, as you'd benefit from a drop but unlikely to rise higher (except the late 80s). Plus the +% was lower. Fixing when rates are low seems to be the better approach.
I'd be nervous about getting a tracker in such an unstable climate - Brexit will happen within 3 years and who knows what's that's going to do. But a drop of more than 0.25% (ie to negative rates) is highly unlikely (but who knows).

Just seen this today too - Was in a bit of a dilemma as I've already got a telephone mortgage appointment booked for this evening with First Direct to go for their 2.08% 5 year fee free mortgage deal and I wondered whether to cancel and go for this.

After much deliberation, I've decided to stick with the First Direct morgage for the extra 0.09%, as theirs allows unlimited overpayments, whereas the overpayments on this are limited to 10% of the capital per year.

For me the 10% overpayments limitation would become too restrictive as the mortgage gets smaller. I'd rather be able to set the minumum monthly payments quite low and then overpay as much as I want to, which you can with the First Direct one.

I'd be nervous about fixing because of Brexit. Job security for many will be more uncertain for a long time yet. Lose your job with no prospect of a new one and being tied into a 5-10 year deal with massive ERC.

Think a tracker with low rates, possibly no great rate increases in the pipeline and the ability to jump on to a fixed at short notice seems a better idea.
Edited by: "JohnnyUtah" 17th Aug 2016

marathonic

Personally, I prefer the 0.8% lower 5-year fix and using the 0.8% as … Personally, I prefer the 0.8% lower 5-year fix and using the 0.8% as overpayments. That way, at no extra cost, you will have paid off 4% (0.8 * 5) of your mortgage balance over the five years.



Not sure about your maths, but I might be wrong.

If you had a £100,000, 25 year mortgage, at 1.99% you pay £423/mo. At 2.79% you pay £463/mo. So if you overpaid the difference, that would be £40 * 60 months, or £2400, which is 2.4% of the mortgage.

DontRun

Just seen this today too - Was in a bit of a dilemma as I've already got … Just seen this today too - Was in a bit of a dilemma as I've already got a telephone mortgage appointment booked for this evening with First Direct to go for their 2.08% 5 year fee free mortgage deal and I wondered whether to cancel and go for this.After much deliberation, I've decided to stick with the First Direct morgage for the extra 0.09%, as theirs allows unlimited overpayments, whereas the overpayments on this are limited to 10% of the capital per year.For me the 10% overpayments limitation would become too restrictive as the mortgage gets smaller. I'd rather be able to set the minumum monthly payments quite low and then overpay as much as I want to, which you can with the First Direct one.


Obviously don't know what deposit/equity you have, but HSBC appear to lend more the higher your deposit/equity.
hsbc.co.uk/1/2…ers

Anyone know of the Best "Buy to Let" mortgages out there?
Thanks in advance! :-)

Original Poster

SewerSide

Not sure about your maths, but I might be wrong.If you had a £100,000, 25 … Not sure about your maths, but I might be wrong.If you had a £100,000, 25 year mortgage, at 1.99% you pay £423/mo. At 2.79% you pay £463/mo. So if you overpaid the difference, that would be £40 * 60 months, or £2400, which is 2.4% of the mortgage.



The big difference is that the outstanding balance reduces much quicker on the lower rate product.

£100,000, 25 year mortgage, at 2.79% you pay £463/mo
£100,000, 22 year mortgage, at 1.99% you pay £468/mo

I reduced the term by 3 years for simplicity - you'd be paying an extra fiver per month for the five years.

Balance after 5 years:

£80,951 on the 1.99% rate
£85,154 on the 2.79% rate

So you'd have paid an extra £300 over the five years on the reduced term, 1.99%, product and the outstanding balance would be £4,203 less - a saving of £3,903

Jesus. I can remember paying 15% in the 90s. Hope those days dont come back for all the younguns. I went from paying £200 a month to £450 a month on 30k mortgage. Imagine that kind of pro rata rise today. Dont take on too much, trust me.

Peco

Anyone know of the Best "Buy to Let" mortgages out there?Thanks in … Anyone know of the Best "Buy to Let" mortgages out there?Thanks in advance! :-)



​Yeh. Its called the dont be greedy mortgage. Leave the houses for them that haven't got one already.

DontRun

After much deliberation, I've decided to stick with the First Direct … After much deliberation, I've decided to stick with the First Direct morgage for the extra 0.09%, as theirs allows unlimited overpayments, whereas the overpayments on this are limited to 10% of the capital per year.For me the 10% overpayments limitation would become too restrictive as the mortgage gets smaller. I'd rather be able to set the minumum monthly payments quite low and then overpay as much as I want to, which you can with the First Direct one.



check the terms very carefully. for example, nationwide is 10% of the original balance, it doesn't reduce down to 10% of each year's new balance...

malcolmleyland

​Yeh. Its called the dont be greedy mortgage. Leave the houses for them t … ​Yeh. Its called the dont be greedy mortgage. Leave the houses for them that haven't got one already.



Well said

malcolmleyland

​Yeh. Its called the dont be greedy mortgage. Leave the houses for them t … ​Yeh. Its called the dont be greedy mortgage. Leave the houses for them that haven't got one already.



Ha ha that made laf!

lanc1979

The advice used to be to get a tracker when rates were high, as you'd … The advice used to be to get a tracker when rates were high, as you'd benefit from a drop but unlikely to rise higher (except the late 80s). Plus the +% was lower. Fixing when rates are low seems to be the better approach.I'd be nervous about getting a tracker in such an unstable climate - Brexit will happen within 3 years and who knows what's that's going to do. But a drop of more than 0.25% (ie to negative rates) is highly unlikely (but who knows).



​i hear what you're saying, however, my thinking for jumping onna tracker in the current climate is this: to get the lowest rate, not that I'm expecting it to go lower, but instead stay where it is. I don't expect it'll go down, but I'd like to be able to take advantage of staying on the lowest rate for as long as possible, after paying at 3.49 for the past 4 years, I could've got a better deal you see (ah isn't hindsight a wonderful thing!)

jonathan_d

check the terms very carefully. for example, nationwide is 10% of the … check the terms very carefully. for example, nationwide is 10% of the original balance, it doesn't reduce down to 10% of each year's new balance...



​NW currently offers mortgages with no limit to overpayments. And they seem to be offering best 2 year deals at the moment.

Also free valuation and legal fee free. More cashback of 250 for current account holders. Looking forward to remortgage to them next year...

This is a great deal. Would be all over this but sadly still got 1 year left on my 3.7% fixed. Doh!

datgreg

This is a great deal. Would be all over this but sadly still got 1 year … This is a great deal. Would be all over this but sadly still got 1 year left on my 3.7% fixed. Doh!



4.29% for us for another year :-(

FYI. I've not been keeping a very close eye on mortgage rates since the BOE cut but have read that not many banks are passing on the cut either in full or part. If the BOE cut again (not a certainty by any means) it will ony likely be a marginal cut of 10 or 15 bp (so rates cut to 0.15% or 0.10%). Several MPC members have said that "the lower bound is above zero", i.e they won't cut rates to 0%. That means that if they do cut, the banks will have an even smaller margin to cut their rates again.

Rates are unlikely to rise soon, at least until the full fallout of Brexit is known. However, there's very little room for banks to cut mortgage rates meaningfully lower so we are very close to the bottom as far as they go. Timing is everything but I would think that tracker mortgages will have limited usefulness over the next 2 odd years because their rates will have limited downside. If you get one very close to the BOE rate (say 1.0% above) you can probably wear 2 or 3 hikes and still be better off than other rates at that time but then obviously you'll pay more for a fixed rate from then.

For those who just want piece of mind and stability I think getting a fixed rate for as long as possible at a rate under 2%, if possible, is the way to go.

If I had 50% of the loan value with me, I would not have been scrolling HUKD ha ha
Edited by: "kkthomask" 17th Aug 2016

marathonic

It depends on what rate you're on now or, if you don't have a mortgage … It depends on what rate you're on now or, if you don't have a mortgage yet, whether you have a house in mind that you'd like to purchase.The widespread opinion among economists is that rates will drop in December to 0.1%. That's only a 0.15% drop. It's much easier to see the reasoning behind expectations of rate drops influencing your thought process during application for a mortgage when rates are dropping from 2%+ downwards. From current levels, I wouldn't let expected interest rate drops influence your decision TOO much.



From my understanding the BOE rate only ever changes in quarters ie 0.25℅ at a time. Unless the BOE decides to change their policy, I'm not sure where these economists are getting their information from. The next drop would be down to zero and below.

anything over 0.25 is a rip off X)

nice cheap mortgages but grossly overpriced housing

don`t know about you but i would prefer expensive mortgages and cheap houses
Edited by: "londonguy" 17th Aug 2016

Peco

Anyone know of the Best "Buy to Let" mortgages out there?Thanks in … Anyone know of the Best "Buy to Let" mortgages out there?Thanks in advance! :-)




sorry buy to let died ages ago

I just signed up for the exact same mortgage for the second time - 2 year tracker with no early repayment charge. 0.89% + base rate (santander). Also get 1% of payments back as cashback.

The fees to settle early on a long term deal are often quite high, and due to the current uncertainty I really can't see any drastic change coming that makes a long term deal appealing.
Edited by: "delusion" 17th Aug 2016
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