Barclays 10 Year Fix Mortgages @ 3.89% with £1499 fee
-202°Expired

Barclays 10 Year Fix Mortgages @ 3.89% with £1499 fee

33
Found 4th Mar 2014
Bear with me on this, as you must be thinking, why should I pay 3.89% when I can have a 1.49% above base for life through the HSBC tracker?

Simple answer is
1) because interest rates are expected to increase in year or two. When they do increase, these cheap deals won't be around.
2) this would allow you to fix your payments for 10 years, which would be a considerably period for most. I'd be able to pay off my mortgage and have certainty over payments.
3) you can keep switching deals every 2 years but it incurs costs in form of valuation, solicitors, booking/arrangement fee scams... This would in incur one charge and that's it.

There are some restrictions such as 10% yearly repayment over the top but any more results in you being charged early repayment penalty of upto 6% (but there are ways around this such as changing your term). The mortgage is portable so if you move house, the mortgage goes with you.

I think it's a great deal for those who want certainty but not suited for everyone I know. Hope it helps someone else!

33 Comments

Original Poster

Found a great link which summarises interest rates since 1997. It shows they stay above 3.75% until 07
housepricecrash.co.uk/gra…php

Edited by: "skgwho" 4th Mar 2014

nothing can say what will ahppen, despite many many theories and opinions, £1500 fee is outrageous!

Yorkshire Building Society also do a 10yr fixed term.

3.99%, 75%LTV, £130 Mortgage application fee.


Re point 3; you can keep switching deals every 2 years but it incurs costs in form of valuation, solicitors, booking/arrangement fee scams... This would in incur one charge and that's it.

Switching mortgage provider wouldn't always incur solicitors fee and valuations, many banks offer free surveys and fees when switching.

Original Poster

andynicol

Yorkshire Building Society also do a 10yr fixed term.3.99%, 75%LTV, £130 … Yorkshire Building Society also do a 10yr fixed term.3.99%, 75%LTV, £130 Mortgage application fee.Re point 3; you can keep switching deals every 2 years but it incurs costs in form of valuation, solicitors, booking/arrangement fee scams... This would in incur one charge and that's it.Switching mortgage provider wouldn't always incur solicitors fee and valuations, many banks offer free surveys and fees when switching.



Agreed but the lowest deals which exist generally come with higher fees. And did look at ybs but .1% on average mortgage of 150k across 10 years is £1500 and would be more expensive.

Original Poster

philjstephenson

nothing can say what will ahppen, despite many many theories and … nothing can say what will ahppen, despite many many theories and opinions, £1500 fee is outrageous!



True, but I'd bet good money on interest rates rising with next 2 years which is what I'm doing with this mortgage

Just in case you're in the final throes of divorcing your sanity and contemplating going for this...it's not available to customers looking to remortgage their current property

DAZZ2000

Just in case you're in the final throes of divorcing your sanity and … Just in case you're in the final throes of divorcing your sanity and contemplating going for this...it's not available to customers looking to remortgage their current property



no good for me in which case :-)

The cold votes only go to prove how utterly stupid or naive some people on here really are. As someone who remembers being on a fixed rate of 12.75%and being glad about it, some people have absolutely no clue what can happen when rates start climbing. Im ready to end my existing one early, and pay the penalty, just so I can jump on a good 10 year deal to see the remainder of my mortgage fixed, and subsequently worry free.

It's a gamble for me at the moment, as I save a fair bit on the penalty by waiting till the end of this year, so hoping to be able to do that and get a good deal before the rates start climbing again.

And they absolutely will climb!!!!!

ghostm4n

The cold votes only go to prove how utterly stupid or naive some people … The cold votes only go to prove how utterly stupid or naive some people on here really are. As someone who remembers being on a fixed rate of 12.75%and being glad about it, some people have absolutely no clue what can happen when rates start climbing. Im ready to end my existing one early, and pay the penalty, just so I can jump on a good 10 year deal to see the remainder of my mortgage fixed, and subsequently worry free.



No, it goes to show that people on a deal site know how to shop around for deals other than Xbones and toilet paper. I am on a BRT at total 1.99% for lifetime, with zero fees. The base rate would need to rise to 2.5% before this deal affected me, not including the fees. Also, you need to calculate the average interest payment on 3.89% for every month between now and the rate rising to 2.5%. On a mortgage of 150k you're paying £238 extra in interest for every month the base rate doesn't go up.

So don't spout off about how ignorant people are; you just come off as ignorant yourself.
Edited by: "crumpo" 4th Mar 2014

ghostm4n

The cold votes only go to prove how utterly stupid or naive some people … The cold votes only go to prove how utterly stupid or naive some people on here really are. As someone who remembers being on a fixed rate of 12.75%and being glad about it, some people have absolutely no clue what can happen when rates start climbing. Im ready to end my existing one early, and pay the penalty, just so I can jump on a good 10 year deal to see the remainder of my mortgage fixed, and subsequently worry free.



I was on a 10 year fixed rate of over 6% when the rates when up for a couple of months and then plummeted, it probably cost me £100s over the period of the mortgage, after a couple of years with no sign of the 'predicted rate rise' I took the decision to clear the mortgage as quickly as possible as this was costing me a lot of money and this was probably the only benefit to me of being on a high fixed rate, at least it made me get rid of the mortgage.

I personally would not be looking to HUKD for advice on future rate rises and benefits of fixing mortgages.

mike

I think OP deserves a bit of slack here.....3.89 for 10 years - admitedly the fee is a bit steep....is an absolutely great deal FOR THISE THAT WANT 10 YEARS OF CERTAINTY. He isnt giving advice or trying to predict interest rates....the only thing we can be sure of is that interest rates only have one way to go - up....does that mean they will shoot up rapidly or stagnate at less than 1 pc for years and years to come...dont know.

YBS also has a great range of offset mortgages....they do a 10 year but it was a little more expensive last time I looked...iro 4.09% from memory.

ghostm4n

The cold votes only go to prove how utterly stupid or naive some people … The cold votes only go to prove how utterly stupid or naive some people on here really are. As someone who remembers being on a fixed rate of 12.75%and being glad about it, some people have absolutely no clue what can happen when rates start climbing. Im ready to end my existing one early, and pay the penalty, just so I can jump on a good 10 year deal to see the remainder of my mortgage fixed, and subsequently worry free.



Not everyone wants or needs to know what they will be paying for te next 10 years...if you have taken a 10 year ficed deal (not sure if they had existed then) 10 years ago, they would have paid WELL OVER the odds for it and the extra interest payments would have been scary as well...in fact a lot of people that had mid to long term fixed mortgages have been better off changing early and paying fees to do so as the cost of doing so was always less than the savings theyd make on new rates.

I think if you are the sort of person that has to know what your monthly outgoings are and are watching every penny, then this is a great idea and can allow you to easily plan the next ten eyars...BUT...if you are flexible and want to be able to be so going forward this is the wrong mortgage for you.

In relation to interest rates, yes they can only go one way...but when they do start going up they wont be charging up....and the UK numbers need to keey improving for sometime to come before that even starts to happen.

I for one am lucky to be on a mortgage where its dropped out of fix and I only pay 1% above base on a reliatvely small amount....probably 12% LTV left to go....but had i been locke din long term the amount of extra interest I'd be paying would be sickening.

But at the end of the day, no matter how good the deal looks, THE FEE is extortionate....and crazily high.....

ghostm4n

And they absolutely will climb!!!!!



but not for a while yet and ievn if they do it will be a quarter percent at the most for a while....and quoting interest rates up at your past levels are misleading,...it was a different world back then and many different forces were in play. Could they get back there again...of course they could....but the likelihood of that happening anytime in the near-mid term are very very very unlikely....

mgk

I think OP deserves a bit of slack here.....3.89 for 10 years - admitedly … I think OP deserves a bit of slack here.....3.89 for 10 years - admitedly the fee is a bit steep....is an absolutely great deal FOR THISE THAT WANT 10 YEARS OF CERTAINTY. He isnt giving advice or trying to predict interest rates....the only thing we can be sure of is that interest rates only have one way to go - up....does that mean they will shoot up rapidly or stagnate at less than 1 pc for years and years to come...dont know.YBS also has a great range of offset mortgages....they do a 10 year but it was a little more expensive last time I looked...iro 4.09% from memory.



Im not diagreeing that the rate is bad...in fact its not bad at all...but the FEE is ridiculous and cheaper can be found elsewhere...and that is the very point of this website is it not

As with all these things, it depends on your circumstances and drivers.

We've fixed for 5 years with YBS becuase a) the fees were only £800 which didn't seem too bad in relation to the size of our mortgage and b) the rate was just over 3% and offset mortgage - all of which suited our circumstances.

There are a lot of people out there who remember rates being unbelievably high - not just high as in "oh I have to pay another £200 a month, hmm where am I going to economise to find that from" but high as in "my house is being repossessed". There's a huge difference between going on a tracker to a 6% mortgage, and going up to 12% plus. Some people are willing to pay more for peace of mind over 10 years. However, I agree, HotUKDeals probably isn't the place to go looking for a hot mortgage deal, somewhere like moneysavingexpert has a much deeper debate on rates and fixing etc...

I dont know. I think its a good idea to know exactly what your biggest outgoing expense will be for the next ten years dont you?

Unless you course you own a Ferrari

This is a good deal for those that want/need/qualify for it. Not for me personally but hot nonetheless.

That fee is taking the Mickey. Hot rate frozen ice cold by greedy bankers

As I recall there have nearly always been mortgage deals around. As one of those who was paying over 12% many years ago - and joining a 3-6 month waiting list to get a mortgage I sympathise with anyone who wants to fix their outgoings. I have always treated mortgages and banks as commodities. Shop around to get good deals and change or review your mortgage every few years if you can. It has sometimes paid me to pay a penalty to get out of an expensive deal. With rates low, the only way is up but I would only tie up for 10 years if I didn't want to pay the mortgage off early with any lump sums and was happy to pay the extra interest now in the hope the mortgage rates didn't exceed that over the 10 years, agree that the fee is ghastly and of course it is Barclays who are not famed for their service. So no stats or predictions from me as my crystal ball isn't what it used to be. If you want to fix for 10 years, shop around and go for the cheapest with the least penalties and fees. If this is it, for you, then great. Relax in the knowledge of what your outgoings are.

Before you go switching look at what your rate reverts to when your deal ends.
Sometimes its better just to sit on the standard variable rate as this is could be much less.
You will need to factor in any rate rises, but consider the difference and way up the likelihood of it going up that much.

I think the days of steep quick hikes of rates are gone in the long term as doing so would cripple the economy. Maybe in the distant future they will come back.

PS I wouldn't touch this deal due to the fee.

I use to think Barclays where great. So disappointed with them these days. rubbish interest rates for savers, ppi scandal. this is the reason they are doing this deal. So some of you mugs, will help them get back the lost money from the fine.

My tip, go for the bank of mum and dad. They generally give good rates
Edited by: "leeparsons" 4th Mar 2014

crumpo

No, it goes to show that people on a deal site know how to shop around … No, it goes to show that people on a deal site know how to shop around for deals other than Xbones and toilet paper. I am on a BRT at total 1.99% for lifetime, with zero fees. The base rate would need to rise to 2.5% before this deal affected me, not including the fees. Also, you need to calculate the average interest payment on 3.89% for every month between now and the rate rising to 2.5%. On a mortgage of 150k you're paying £238 extra in interest for every month the base rate doesn't go up. So don't spout off about how ignorant people are; you just come off as ignorant yourself.



You have a very short term outlook, and the inevitable rate rise appears to be getting closer with every announcement. Once it starts, there will be a lot of people who haven't prepared adequately that are going to get burned. Likewise those on interest only mortgages, or endowment mortgages, that haven't heeded the advice that the mortgage companies now send them out. The benefit of another year of lower rates could quite easily be dwarfed by the impact of many years at higher rates. These things are all cyclical, and we have been at the bottom of the curve for some time now.

Simon4151561

Before you go switching look at what your rate reverts to when your deal … Before you go switching look at what your rate reverts to when your deal ends.



No-one would surely fix for 10yr and then just leave there mortgage in the same place at the end of the term ?

IF you left it where it is, your rate would be Barclays Base Rate (currently 0.50%) PLUS 3.39%.

IF you had any balance left you would surely look again for the best deal to suit your needs.




Edited by: "andynicol" 4th Mar 2014

ghostm4n

You have a very short term outlook, and the inevitable rate rise appears … You have a very short term outlook, and the inevitable rate rise appears to be getting closer with every announcement. Once it starts, there will be a lot of people who haven't prepared adequately that are going to get burned. Likewise those on interest only mortgages, or endowment mortgages, that haven't heeded the advice that the mortgage companies now send them out. The benefit of another year of lower rates could quite easily be dwarfed by the impact of many years at higher rates. These things are all cyclical, and we have been at the bottom of the curve for some time now.



http://2.bp.blogspot.com/-WaaPzMNSCEg/TzzcnvUVYYI/AAAAAAAABRw/uczYEHTr9s4/s1600/end-is-near.jpg

I think there has been many valid comments from either side, to fix or not, I think the Op should be thanked for posting and perhaps like the super thread for sim deals, convert this to a super thread for mortgages, because this is the biggest expense to anyone that owns a home and has a mortgage, therefore any savings here would dwarf getting £200 of the latest LED tv, or getting a misprice of something which was meant to be for £20, for £5. The benefits could be like a super hotukdeal, every month for the duration of your mortgage or at the extreme of retaining the roof over your head!

Well done all for the healthy discussion, the views all add thought to a massive commitment for all, bring on the best deals for the mortgages, i am certainly going to start reviewing!!!

ghostm4n

You have a very short term outlook, and the inevitable rate rise appears … You have a very short term outlook, and the inevitable rate rise appears to be getting closer with every announcement. Once it starts, there will be a lot of people who haven't prepared adequately that are going to get burned. Likewise those on interest only mortgages, or endowment mortgages, that haven't heeded the advice that the mortgage companies now send them out. The benefit of another year of lower rates could quite easily be dwarfed by the impact of many years at higher rates. These things are all cyclical, and we have been at the bottom of the curve for some time now.



No, my outlook is actually more medium-term. Rates will not shoot up in 2015, they will be staggered over the next 3-5 years along a relatively shallow curve to start with. And as I said, if you take the increased cost for every month your current (or equivalent in the market) mortgage will be below this rate+the fee you may find it's not economically viable. I have overpaid constantly since taking out my tracker mortgage and am preparing for the rise; others should be doing so too and locking in rates for 10 years may not be the best/only strategy.

David.BrownJohn put it well earlier-individual circumstances are all different so everyone should do their own calculations to see if deals are right for them. My original point was a response to the ignorant poster saying "anyone who doesn't think 12% Base Rates are coming back is an idiot", and also to add my own personal method of calculating cost/benefit. As you said, not everyone is thinking about this right (I worry for interest-only borrowers) so anything we can do to give people another tool to try and understand mortgage costs should be welcome.

crumpo

No, my outlook is actually more medium-term. Rates will not shoot up in … No, my outlook is actually more medium-term. Rates will not shoot up in 2015, they will be staggered over the next 3-5 years along a relatively shallow curve to start with. And as I said, if you take the increased cost for every month your current (or equivalent in the market) mortgage will be below this rate+the fee you may find it's not economically viable. I have overpaid constantly since taking out my tracker mortgage and am preparing for the rise; others should be doing so too and locking in rates for 10 years may not be the best/only strategy.David.BrownJohn put it well earlier-individual circumstances are all different so everyone should do their own calculations to see if deals are right for them. My original point was a response to the ignorant poster saying "anyone who doesn't think 12% Base Rates are coming back is an idiot", and also to add my own personal method of calculating cost/benefit. As you said, not everyone is thinking about this right (I worry for interest-only borrowers) so anything we can do to give people another tool to try and understand mortgage costs should be welcome.


crumpo

No, my outlook is actually more medium-term. Rates will not shoot up in … No, my outlook is actually more medium-term. Rates will not shoot up in 2015, they will be staggered over the next 3-5 years along a relatively shallow curve to start with. And as I said, if you take the increased cost for every month your current (or equivalent in the market) mortgage will be below this rate+the fee you may find it's not economically viable. I have overpaid constantly since taking out my tracker mortgage and am preparing for the rise; others should be doing so too and locking in rates for 10 years may not be the best/only strategy.David.BrownJohn put it well earlier-individual circumstances are all different so everyone should do their own calculations to see if deals are right for them. My original point was a response to the ignorant poster saying "anyone who doesn't think 12% Base Rates are coming back is an idiot", and also to add my own personal method of calculating cost/benefit. As you said, not everyone is thinking about this right (I worry for interest-only borrowers) so anything we can do to give people another tool to try and understand mortgage costs should be welcome.



>>> My original point was a response to the ignorant poster saying "anyone who doesn't think 12% Base Rates are coming back is an idiot"

Really?? - When you have to resort to changing text and then saying it was quoted - seriously????? That statement was never made anywhere other than in your edited version of what was actually said!!

Anyone know if this rate for remortagages incl Legal fees?

Original Poster

bazza1603

Anyone know if this rate for remortagages incl Legal fees?



Don't think so. It's only the great escape mortgages which have this included.

Have applied for Mortgage via Tesco Compare today and have got Basic legals and basic valuation FOC

Original Poster

bazza1603

Have applied for Mortgage via Tesco Compare today and have got Basic … Have applied for Mortgage via Tesco Compare today and have got Basic legals and basic valuation FOC



Great spot
Post a comment
Avatar
@
    Text