5 Year Fixed Rate Mortgage, 2.74% with just a £195 fee (75% LTV) at Norwich & Peterborough
298°Expired

5 Year Fixed Rate Mortgage, 2.74% with just a £195 fee (75% LTV) at Norwich & Peterborough

39
Found 19th Mar 2015
Have spent the last 2 hours looking at various rates, as far as I can see this is the best deal out there for a fixed 5 year mortgage with a LTV above 65% that also has a low to no fee.

If anyone can find a better deal at 70-75% LTV I'd love to know about it!

39 Comments

Good deal but also worth looking at the YBS fixed offset in my opinion - the rate is slightly higher (2.89 for 75% , 2.59 for 65% ) and fee is a bit higher --- but if you have any spare cash to use in the offset I think this would save you money.

I'm due to remortgage soon to avoid the standard rate, and value of my property has increased (from 80 to 65% LTV). I also plan to sell within 2 years and so expect an early repayment fee (which is usually at least 1-2% of balance), really struggling with what my options are in this scenario.

Original Poster

delusion

I'm due to remortgage soon to avoid the standard rate, and value of my … I'm due to remortgage soon to avoid the standard rate, and value of my property has increased (from 80 to 65% LTV). I also plan to sell within 2 years and so expect an early repayment fee (which is usually at least 1-2% of balance), really struggling with what my options are in this scenario.



Maybe a 2 year fixed deal will suit you better, the rates tend to be a lot better over just 2 years.

david_robinson94

Maybe a 2 year fixed deal will suit you better, the rates tend to be a … Maybe a 2 year fixed deal will suit you better, the rates tend to be a lot better over just 2 years.



Yes I expect it will, but with arrangement fee and early repayment fee it could be around £4k total depending on the lender.

I may not lose that much just staying on a standard rate even if it's 4 or 5% until I sell. Wasn't sure if there were options I hadn't considered.
Edited by: "delusion" 19th Mar 2015

Original Poster

delusion

Yes I expect it will, but with arrangement fee and early repayment fee it … Yes I expect it will, but with arrangement fee and early repayment fee it could be around £4k total depending on the lender. I may not lose that much just staying on a standard rate even if it's 4 or 5% until I sell. Wasn't sure if there were options I hadn't considered.



There are some mortgage offers with no early repayment charges, will have a look later on for you.

Slightly OT, I'm looking at trackers with Nationwide - can either get a 2yr at 1.84% or 3yr at 1.99%, with around a £500 difference over the first 2 years in favour of the shorter deal, so in effect it would cost me £500 to have the option of continuing into the 3rd year at the same rate i.e. if rates have gone up when remortgaging in 2 years I'll probably be out of pocket. If they go down (!) then both have no early exit fees. Any advice on the 2 or 3 year deals please?

Original Poster

rwttm001

Slightly OT, I'm looking at trackers with Nationwide - can either get a … Slightly OT, I'm looking at trackers with Nationwide - can either get a 2yr at 1.84% or 3yr at 1.99%, with around a £500 difference over the first 2 years in favour of the shorter deal, so in effect it would cost me £500 to have the option of continuing into the 3rd year at the same rate i.e. if rates have gone up when remortgaging in 2 years I'll probably be out of pocket. If they go down (!) then both have no early exit fees. Any advice on the 2 or 3 year deals please?


Tough one to answer, my mortgage experience relates to a whole 2 hours or so of looking around and checking up on what the various mortgages are.

The only reason I'm going for the 5 year deal is that the historical average over the last 20 odd years has been around 4.5-5% so I figure that signing in at close to 3% for 5 years should average out in my favour long term.

Ultimately no one knows what will happen to the rates, from what I gather they aren't due to change much at all over the next year or so. But dependant on who gets in government this might quickly change of course.

Moved to the N&P last year for nearly identical deal. The N&P application and interview process is thorough, very thorough - to the point I didn't think my 0% LTV mortgage was going to be accepted!! One year on and very happy with the product and service I received.

LukeW89

https://www.moneysavingexpert.com/mortgages/best-buys/Have a look at this … https://www.moneysavingexpert.com/mortgages/best-buys/Have a look at this great tool...



A newbie question: Click Here Fixed for life with no early repayment is showing 1.89% is that a good deal or bad ? Apologies I have no ideal about mortgages

itsmeavi

A newbie question: Click Here Fixed for life with no early repayment is … A newbie question: Click Here Fixed for life with no early repayment is showing 1.89% is that a good deal or bad ? Apologies I have no ideal about mortgages



If I understand it correctly, that's actually a fixed variable rate... It's 1.39% above the BOE base rate, which is 0.5% at the moment, so you although you start paying 1.89%, as the BOE rate rises, so will your rate e.g. when the BOE rate hits 1.5% you would pay 2.89%
I expect it to start rising by the summer, following the election, but that's just my opinion.
Newspaper last night say the general opinion is that BOE rate will rise to around 2% in the next 5 years.
You won't find a fixed rate of 1.89% anywhere....
Note that it's also only for a new Mortgage, not available to anyone re-mortgaging, and more than likely is only available to existing Coventry account holders.

I've just agreed to remortgage on the Nationwide 10 year fixed at 3.04% with no fees at all.
Applied at just the right time as they have switched it to being 3.39%
I know that the BOE rate can only go up, not down, so for me this is perfect deal.

Edited by: "WalkerboyUK" 20th Mar 2015

WalkerboyUK

That's actually a fixed tracker... It's 1.89% above the BOE base rate, … That's actually a fixed tracker... It's 1.89% above the BOE base rate, which is 0.5% at the moment, so you actually pay 2.39%. As the BOE rate rises, so will your rate.I expect it to start rising by the summer, following the election, but that's just my opinion.Newspaper last night say the general opinion is that BOE rate will rise to around 2% in the next 5 years.You won't find a fixed rate of 1.89% anywhere....I've just agreed the Nationwide 10 year fixed at 3.04% with no fees at all.Applied at just the right time as they have switched it to being 3.39%I know that the BOE rate can only go up, not down, so for me this is perfect deal.



Or stay the same

You won't see rates rise this year. Possibly next year, but seeing as our National debt sits at nearly £1.5 Trillion, the interest payments at 0.5% are manageable whilst we continue to build up debt. Until the National Debt starts to be chipped away (current expectations 2018/19), I don't see interest rates climbing to 1.5%. Indeed the markets have already predicted a modest rise in 2016 (probably 0.25%) mostly due to the rapid drop in the cost of transport as oil prices have caused deflation. This year would be the year to fix for a LONG term (minimum 5 years). Shame I can't do anything until November, leaving me just a little nervous that mortgage rates will begin to climb in anticipation of the BoE rate rise in 2016

WalkerboyUK

I know that the BOE rate can only go up, not down, so for me this is … I know that the BOE rate can only go up, not down, so for me this is perfect deal.



Then I suggest you google and research negative and zero percent interest, (NIRP and ZIRP) it's already in place in European banks and it's coming here, it's just our propaganda, sorry 'media' don't report it.

'You can't taper a ponzi scheme'

I feel with fixed rates you are trying to 'beat the house' as such. The banks are presumably in a much better position to guess at what the market will do and they price their mortgages appropriately in order to make a profit over the fixed term. As I see it with a fix you are essentially betting the banks have got their sums wrong. But I also appreciate the peace of mind a fix gives may be worth it to some.

dont listen to anyone about interest rates going up or down

no ones knows. Best thing you can do it consider what you want out of a mortgage and then focus on a search for the product thaty fits the description.

The reason longer term fixed rates are more expensive than shorter rate fixes is for this very reason. No one can predict the future so price it accordingly.



I'm presently with N&P
the process / phone call is far too long. so many questions which didnt need answering IMHO although they are all scared of miss selling.






paulrfinlay

I feel with fixed rates you are trying to 'beat the house' as such. The … I feel with fixed rates you are trying to 'beat the house' as such. The banks are presumably in a much better position to guess at what the market will do and they price their mortgages appropriately in order to make a profit over the fixed term. As I see it with a fix you are essentially betting the banks have got their sums wrong. But I also appreciate the peace of mind a fix gives may be worth it to some.



The whole point of a fix is so you know exactly what you pay each month for x number of years. It is good reassurance to a homeowner than they wont pay more in month x than they pay in month 1
Rates could conceivably go to 5% or could stay where they are. With the ecomony now improving / re building past excesses theres only 1 way it should go although no one can predict it accurately.

Rates were 5% not so long ago, if you compare a variable rate of 2% Vs a 2% fix you could you see annual costs on a £100k mortgage go up by up to £3k PA @ 5% rate

I've gone with the 10 yr fixed because it does indeed give me the security of knowing that my next 120 payments will be a set amount. When we first took our our mortgage 13 years ago, we were on a variable rate, and every other month saw it go up or down.
It all depends on how you organise your finances. Everything we do is budgeted for, so knowing that we have a set amount going out on the mortgage each month keeps that budget safe and secure, with no nasty shocks.
When the deal ends in 10 years I'll only have 4 years of payments to go. That would be the most likely time for me to look at something variable, dependent on the rates then.

As for zero and negative rates - this country will implode if that ever happens. Banks will crumble because people will just outright stop putting money in accounts that pay no interest at all.

Each to their own though...

It's LTV ratios like that which make Help to Buy look like such a scam. It's clearly propping up the housing market as few people would be able to afford mortgages at the best rates otherwise and well, the reduced demand would at least help to lower house prices a bit.
Edited by: "definition" 20th Mar 2015

its all based on one word... Risk

If you were a bank would you provide the best rate to someone who wants £50k against a property valued at £100k or a personal wanting £95k against a £100k property.. The bank has a lot more to lose from a high LTV so charge accordingly

can able to re-mortgage in Help to buy scheme (75% LTV)- anyone came across ?

Only reason house prices are going up is under supply so more buyers than sellers.. simple economics

Sucessive governments have not built enough houses and now prices will continue to rise until they make inroads into this

paulrfinlay

I feel with fixed rates you are trying to 'beat the house' as such. The … I feel with fixed rates you are trying to 'beat the house' as such. The banks are presumably in a much better position to guess at what the market will do and they price their mortgages appropriately in order to make a profit over the fixed term. As I see it with a fix you are essentially betting the banks have got their sums wrong. But I also appreciate the peace of mind a fix gives may be worth it to some.


Yes. So many people don't realise this aspect, and instead think the question to be asked is: "Will rates go up or down? If up, then I should fix." Clearly the smarter question is: "Will rates go up by enough percentage points, early enough in the next few years, to make it worthwhile paying this much more per month, and do I need that cashflow certainty enough to pay the difference for it?"

Everyone wants certainty, but some people are paying an extra £200 per month just to be protected against the chance of an interest rate hike, which will cost them, say, £90 extra per month if it happens, for each percentage point it goes up.

Xiaoda

Yes. So many people don't realise this aspect, and instead think the … Yes. So many people don't realise this aspect, and instead think the question to be asked is: "Will rates go up or down? If up, then I should fix." Clearly the smarter question is: "Will rates go up by enough percentage points, early enough in the next few years, to make it worthwhile paying this much more per month, and do I need that cashflow certainty enough to pay the difference for it?"Everyone wants certainty, but some people are paying an extra £200 per month just to be protected against the chance of an interest rate hike, which will cost them, say, £90 extra per month if it happens, for each percentage point it goes up.



My current deal with Natwest is at 4.79%, ending 31st May and dropping to 3.5% above base rate.
We could sit on the new rate and not go anywhere else and pay less than we currently pay, then move as soon as the rates rise, but there's no guarantee you'll get good rates when that happens.
We've gone to Nationwide on 3.09% so that's even cheaper.
The monthly difference to going onto a 2 year variable or even a fixed is neglible for the amount we are actually borrowing (about £15 per month), so for us it's just the long term assurance of a set monthly figure.

to find a better really need to know how much you looking to borrow

Good find shame locked in

I'm due to change mine, currently at 80% LTV Natwest have offered, only fixed rate at 2.53% for 2 years or 3.35% for 5 years, can't decide which..... Can't have flexible or tracker due to high LTV.

Anyone recommend 2 or 5?

Marin

I'm due to change mine, currently at 80% LTV Natwest have offered, only … I'm due to change mine, currently at 80% LTV Natwest have offered, only fixed rate at 2.53% for 2 years or 3.35% for 5 years, can't decide which..... Can't have flexible or tracker due to high LTV. Anyone recommend 2 or 5?



You can get a better rate than 3.35% for 5 year fixed. I've just got 2.95% with that LTV. £950 fee though which affects it slightly. Fix for 5 years or 10....

Got this last time, exactly same deal - legal fees paid

Xiaoda

Yes. So many people don't realise this aspect, and instead think the … Yes. So many people don't realise this aspect, and instead think the question to be asked is: "Will rates go up or down? If up, then I should fix." Clearly the smarter question is: "Will rates go up by enough percentage points, early enough in the next few years, to make it worthwhile paying this much more per month, and do I need that cashflow certainty enough to pay the difference for it?"Everyone wants certainty, but some people are paying an extra £200 per month just to be protected against the chance of an interest rate hike, which will cost them, say, £90 extra per month if it happens, for each percentage point it goes up.



Exactly, my belief would be that practically everybody on a fixed mortgage pays over the odds versus them having taken a variable over the life of the mortgage. It'd be interesting to see if there's any data on times when fixes did protect against large rate increases.

WalkerboyUK

My current deal with Natwest is at 4.79%, ending 31st May and dropping to … My current deal with Natwest is at 4.79%, ending 31st May and dropping to 3.5% above base rate.We could sit on the new rate and not go anywhere else and pay less than we currently pay, then move as soon as the rates rise, but there's no guarantee you'll get good rates when that happens.We've gone to Nationwide on 3.09% so that's even cheaper.The monthly difference to going onto a 2 year variable or even a fixed is neglible for the amount we are actually borrowing (about £15 per month), so for us it's just the long term assurance of a set monthly figure.



You're comparing against the Standard Variable Rate that you get placed on after you finish your fixed rate. That is always a terrible, terrible rate. It can also be varied by lender at any time, without notice.
I'm talking about tracker mortgages. In these, your interest rate always 'tracks' the Bank of England Base Rate plus a small margin. You should be comparing your fixed rate against the best tracker rate you can get, and reconsider. You may still come to the same conclusion, but at least you won't be making the wrong comparison. For instance, take a look at what's on offer between the fixed and tracker rates here:
google.co.uk/com…ANQ!purpose=REMORTGAGE&totalMortgage=300000&propertyValue=500000&propertyLocation=ENGLAND&missedRepayments=false&repaymentsType=CAPITAL_AND_INTEREST&term=25&applyRoute=true&jointApplication=false&annualIncome&employmentStatus&annualIncome2&employmentStatus2&rates%5B%5D=TRACKER&initialPeriod%5B%5D=ONE&initialPeriod%5B%5D=TWO&initialPeriod%5B%5D=THREE&initialPeriod%5B%5D=FOUR&initialPeriod%5B%5D=FIVE&initialPeriod%5B%5D=TEN&initialPeriod%5B%5D=NO_INITIAL_PERIOD&tab=search&sortBy=OVERALL_COST

paulrfinlay

Exactly, my belief would be that practically everybody on a fixed … Exactly, my belief would be that practically everybody on a fixed mortgage pays over the odds versus them having taken a variable over the life of the mortgage. It'd be interesting to see if there's any data on times when fixes did protect against large rate increases.



YES. I too would be interested in seeing such data. I have the same suspicion...

I pay 0.75% above BOE rates and have no intention of changing, no matter what the interest rates are. Best mortgage is the one that suits u most. If you want short term then look at minimal early redemption fees or shorter deal. If you want long term with stability, then fixed rate is best. Lots of different mortgages to suit each one of us. Just need to choose the right one. Good luck

going for 2 year fix with Halifax as already a customer, got 13 years 3 months to go.

can renew deal last 3 months of old deal, fix rate is 1.99% no fees, works out for us a on a mortgage left of 42k as house now worth 88k is £305 pm

as current fix rate we pay is 5.79.

delusion

Yes I expect it will, but with arrangement fee and early repayment fee it … Yes I expect it will, but with arrangement fee and early repayment fee it could be around £4k total depending on the lender. I may not lose that much just staying on a standard rate even if it's 4 or 5% until I sell. Wasn't sure if there were options I hadn't considered.



delusion

I'm due to remortgage soon to avoid the standard rate, and value of my … I'm due to remortgage soon to avoid the standard rate, and value of my property has increased (from 80 to 65% LTV). I also plan to sell within 2 years and so expect an early repayment fee (which is usually at least 1-2% of balance), really struggling with what my options are in this scenario.


Most mortgages are portable so you don't need to worry about ERC

WalkerboyUK

As for zero and negative rates - this country will implode if that ever … As for zero and negative rates - this country will implode if that ever happens. Banks will crumble because people will just outright stop putting money in accounts that pay no interest at all.



If you say so.

'You can't taper a ponzi scheme'

My product finishes the end of august. Is it too early to apply now. Intending on going for the 2.19 fix with first direct then once it goes thru go for the 1.79 tracker . if it looks like there is going to be a hike get back to a fix again. Thoughts....?

There is a charge (£350.00) for valuation on this mortgage.

So in total, your fees will be a minimum of £545.00.

isla123

Most mortgages are portable so you don't need to worry about ERC



Last time I sold 6 months before my house purchase or I would have lost my buyer, so would not have been able to port.

Anyway I have decided on a 2 year loyalty tracker with Santander. 1.39% with £495 fee, and no ERC other than repay legal/valuation fees they paid for.
Edited by: "delusion" 2nd Apr 2015
Post a comment
Avatar
@
    Text