Barclays 7 year fixed mortgage - 1.69% - £999 booking fee - 60% LTV @ Barclays
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Barclays 7 year fixed mortgage - 1.69% - £999 booking fee - 60% LTV @ Barclays

169
Posted 22nd May
If anyone is in same boat as me where you’re waiting for the mortgage interest rate to go below 1% but at the same time not 100% sure of the job security above 7 year deal from Barclays looks something to keep in back of the mind. My gut feeling is mortgage interest most likely will go below 1% by end of the year and I’m happy to wait but I’m currently in a position where there is no job security so need to be in lookout . So, should something happen this 7 year deal can take me towards the end of the mortgage and I can just manage to pay by working part time . Obviously, everyone’s situation is different and I guess it’s not bad to have another option . Stay safe everyone.
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Thanks for posting @Sunny_R

7 year fixed rate mortgage with a 1.69% rate and £999 booking fee wih 60% LTV. This maybe of interest if you are looking to remortgage, with a higher level of equity and looking for a longer term deal. Whilst the headline rate is slightly higher than the 5 year deals, you are getting a longer term rate which may suit some looking for more certainty. Barclays also offering a switch incentive to waive your standard legal fees or give you cashback.

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60% Maximum Loan to Value (LTV) - 7 Year Fixed Rate 1.69% £999 booking fee

  • 7 year fixed rate 1.69% rate with 60% LTV - reverts to 3.59% after that period
  • £999 booking fee
  • Early Repayment charge 5%

How to compare mortgages

To calculate the total cost of a mortgage deal. You can do this by adding together the total monthly payments over the fixed period (7 x 12 = 84 payments in this case) then adding any product fee minus any cashback.

LTVs

LTV stands for loan-to-value and is the percentage of the property’s value you want to borrow. So if a property is worth £100,000 and you need to borrow £60,000, your LTV is 60%; if you need to borrow £90,000, your LTV would be 90%. All other things being equal, the lower your LTV, the better the mortgage rates you’ll be offered.
Remember the ERC is 5% for the whole of the mortgage term! It’s a long time to be locked in. Only do it if not moving and your family’s situation will likely not change.
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Top comments
bengalknights22/05/2020 11:06

The big question will negative interest rates mean we get paid to take out …The big question will negative interest rates mean we get paid to take out mortgages???


No.
Good if you want to fix for that long, but in all likelihood, rates will not go up. I’d go for a 5 year fixed at most (at around 1.39% rate) and save yourself some money. Even at 1.39% you risk paying more than others when rates drop even further, but fair enough for peace of mind and if you’re at the end of your mortgage the difference in interest will be minimal.
slannmage22/05/2020 15:26

It's what happens when you have government intervention, it all goes to …It's what happens when you have government intervention, it all goes to crap. They've been subsidising everything... like with Electric Cars, they're paying out crazy amounts for something that isn't self sufficient. They need to let the market come to it, they cannot force it... and they're trying to with all the taxes they put on us with made up BS. I wonder why we have a house issue? I mean Leasehold might have something to do with it. 400K people into the country each year might have something to do with it.... which 6 million migrants since 2001, no wonder why our services cannot cope. It's not hard to find the issues, but the government are too worried about the media to take any action.


The housing crisis first started when the UK stopped building council houses in the mid 70's. Look at graphs of average House prices from 1950's to today and you'll see house price inflation went ape after housing was left alone to the private sector. This resulted in us having less and less disposable income which led to personal credit and that crashed in 2008. Now milennials can't afford houses or personal credit. The banks are skint and are now targeting parents equity through these pathetic and desperate springboard mortgages. The TV adverts are now targeting a largely desperate population through gambling and bingo adverts. And yes brexit was caused by the Blair government failing to get max free movement quotas when the Eastern block joined the EU in 2004. And while all this has been going on the wealth of the global elite has doubled to trebled..........
All this thread has told me is - DO NOT COME HER FOR FINANCIAL ADVICE.
169 Comments
Good if you want to fix for that long, but in all likelihood, rates will not go up. I’d go for a 5 year fixed at most (at around 1.39% rate) and save yourself some money. Even at 1.39% you risk paying more than others when rates drop even further, but fair enough for peace of mind and if you’re at the end of your mortgage the difference in interest will be minimal.
Strange times indeed when 1.69% might seem a bit high. Fixed for 7 years I can really see the benefit though.
The big question will negative interest rates mean we get paid to take out mortgages???
bengalknights22/05/2020 11:06

The big question will negative interest rates mean we get paid to take out …The big question will negative interest rates mean we get paid to take out mortgages???


Negative interest rates? So we pay the banks to look after our money?
bengalknights22/05/2020 11:06

The big question will negative interest rates mean we get paid to take out …The big question will negative interest rates mean we get paid to take out mortgages???


No.
bengalknights22/05/2020 11:06

The big question will negative interest rates mean we get paid to take out …The big question will negative interest rates mean we get paid to take out mortgages???


Nope, negative rates will be interbank in order to encourage banks to lend out money at very low rates. I doubt banks will ever actually pay us to take out loans!
Edited by: "Thyme" 22nd May
spanner7922/05/2020 11:08

Negative interest rates? So we pay the banks to look after our money?


That's possible, but can't see it happening in reality as everyone will withdraw their cash and hide it in their house - good news for burglars though.
Thyme22/05/2020 11:05

Good if you want to fix for that long, but in all likelihood, rates will …Good if you want to fix for that long, but in all likelihood, rates will not go up. I’d go for a 5 year fixed at most (at around 1.39% rate) and save yourself some money. Even at 1.39% you risk paying more than others when rates drop even further, but fair enough for peace of mind and if you’re at the end of your mortgage the difference in interest will be minimal.


I’m myself waiting for interest rate to go below 1% but should something happen to job I can’t get another mortgage as my partner isn’t working due to her health and family commitment so this is just an option which will take me towards the end of my mortgage even by working 3-4 days at Tesco 😃 . That’s why I said it’s just another option . Ideally I want 10yr deal but I can’t find any 10yr deal that’s competitive enough.
I know there's also cashback on one of the barclays accounts too, so you pay a tenner for the current account and get 13 back for having a mortgage. Anyone know the exact details?
Thyme22/05/2020 11:08

Nope, negative rates will be interbank in order to encourage banks to lend …Nope, negative rates will be interbank in order to encourage banks to lend out money at very low rates. I doubt banks will ever actually pay us to take out loans!


Not on a fixed rate basis they won’t but on any other basis they wouldn’t think twice about sucking you in with an incentive payment to borrow in the knowledge they can hike up the rate a few months later. Just be wary because what might seem like a no brainer can get you into a debt which becomes unmanageable later.

The arrangement fees are where they make their money so again factor that in when comparing deals. The shorter the term, the greater the true APR is when a set arrangement fee such as £999 is factored in.

In countries in which banks have set negative interest rates on fixed term mortgages, these have been accompanied by a high arrangement fee which bring the equivalent APR into positive territory, ensuring that the customer doesn’t profit from the deal.
Edited by: "COUPONKEV" 15 h, 23 m ago
FYI, Barclays launched new 85% ltv products this morning, interestingly at higher rates relative to before Corona crisis (think 2.1% vs 1.9% earlier this year). So much for waiting for the rates to drop, don't think any bank will push for lower interest rates on mortgages at that level any time soon
tapi22/05/2020 11:14

I know there's also cashback on one of the barclays accounts too, so you …I know there's also cashback on one of the barclays accounts too, so you pay a tenner for the current account and get 13 back for having a mortgage. Anyone know the exact details?


Rewards I think
tapi22/05/2020 11:14

I know there's also cashback on one of the barclays accounts too, so you …I know there's also cashback on one of the barclays accounts too, so you pay a tenner for the current account and get 13 back for having a mortgage. Anyone know the exact details?


Blue Rewards, I think
How I wish I could take it down to 60% LTV
It would be nice if there were mortgage deals other than 60% LTV ones. Banks are being too greedy.
Thyme22/05/2020 11:05

Good if you want to fix for that long, but in all likelihood, rates will …Good if you want to fix for that long, but in all likelihood, rates will not go up. I’d go for a 5 year fixed at most (at around 1.39% rate) and save yourself some money. Even at 1.39% you risk paying more than others when rates drop even further, but fair enough for peace of mind and if you’re at the end of your mortgage the difference in interest will be minimal.


For myself it's a balancing act. The 1.69% im chasing (ERC ) will mean a payment of just £292 a month payment (£62k mortgage). If mortgage rates drop to say 1%, a payment of £273. Saves £19.
However, as many, I'm nervous of the job market scenario and as I work in leisure, some doubts have to exist. Thus if my job was to go and I had re-employment issues, at the SVR, I'm up to £335 per month, with reduced income, employability and financial security.

I think I have made my mind up that I would rather risk the £19 against a SVR (I know potentially that would go down) with a lock in rate.
drdoom2k22/05/2020 11:17

FYI, Barclays launched new 85% ltv products this morning, interestingly at …FYI, Barclays launched new 85% ltv products this morning, interestingly at higher rates relative to before Corona crisis (think 2.1% vs 1.9% earlier this year). So much for waiting for the rates to drop, don't think any bank will push for lower interest rates on mortgages at that level any time soon


That is an interesting development. May be because of LTV but interesting nonetheless that some rates, potentially on the up.
bantamdave3322/05/2020 11:21

For myself it's a balancing act. The 1.69% im chasing (ERC ) will mean …For myself it's a balancing act. The 1.69% im chasing (ERC ) will mean a payment of just £292 a month payment (£62k mortgage). If mortgage rates drop to say 1%, a payment of £273. Saves £19.However, as many, I'm nervous of the job market scenario and as I work in leisure, some doubts have to exist. Thus if my job was to go and I had re-employment issues, at the SVR, I'm up to £335 per month, with reduced income, employability and financial security.I think I have made my mind up that I would rather risk the £19 against a SVR (I know potentially that would go down) with a lock in rate.


I’m in same boat . I’m keeping all my finances - pay slips , bank statements etc ready so at the slightest sign my job is in trouble I’m pulling the trigger as the extra cost of not getting another mortgage and SVR kicking in if job is lost, outweighs the benefit if the interest rate goes below 1% . And looking at how things are going my job will go first before the banks reduces their rate below 1%
Edited by: "Sunny_R" 22nd May
The next year will be a huge economic crash, interest rates will hit 0.
My fixed rate is up in October, I can refix with current provider Santander a week or so. I may have around 70% LTV but I obviously don’t know what they’ll value mine at. It’s hard to know whether to stick it out and see what happens by October (if house prices drop then my rate will be higher) or to just refix now with my current provider.
Also - I think most places do a desktop valuation but I’ve renovated the whole house (outside’s still a building site), how do I get that taken into consideration? Maybe I’ll wait to see what the value it at first....
BARCLAYS. Worst bank ever. The biggest turd in a turd storm.
slannmage22/05/2020 11:30

The next year will be a huge economic crash, interest rates will hit 0.


I think same but then house prices will go down and LTV might not be same if your house prices was high and then there’s more important issue with job security for most of us as even the bigger companies are going to the wall.
Why would you fix yourself in at a higher rate for 7 years! Rates will be coming down further when the recession hits later this year.
mad_design_man22/05/2020 11:41

Why would you fix yourself in at a higher rate for 7 years! Rates will be …Why would you fix yourself in at a higher rate for 7 years! Rates will be coming down further when the recession hits later this year.


Because of job security. This is just another option should the job go . Better fix at slightly higher fix than pay even higher SVR which for me is around £3.99% 🥵 7 yr will tick me towards the end of the mortgage just about working part time . It’s something to consider for others that are in same boat as me .
I recently fixed as after thinking about the situation, I decided to pay a little more per month is safer than ending up on the SVR if my employer made cuts. But looking at other countries that have opened up - touchwood they're not seeing the possible spikes so if this continues then the predictions of a relatively quick economic recovery could very well come true
bantamdave3322/05/2020 11:21

For myself it's a balancing act. The 1.69% im chasing (ERC ) will mean …For myself it's a balancing act. The 1.69% im chasing (ERC ) will mean a payment of just £292 a month payment (£62k mortgage). If mortgage rates drop to say 1%, a payment of £273. Saves £19.However, as many, I'm nervous of the job market scenario and as I work in leisure, some doubts have to exist. Thus if my job was to go and I had re-employment issues, at the SVR, I'm up to £335 per month, with reduced income, employability and financial security.I think I have made my mind up that I would rather risk the £19 against a SVR (I know potentially that would go down) with a lock in rate.


You wouldn’t end up on an SVR, you’d just remortgage... but yes I understand given the circumstance £19pm is a low payment to completely remove the risk of potential remortgaging issues.
£999 booking fee - no wonder banks get a bad press.
Thyme22/05/2020 12:09

You wouldn’t end up on an SVR, you’d just remortgage... but yes I und …You wouldn’t end up on an SVR, you’d just remortgage... but yes I understand given the circumstance £19pm is a low payment to completely remove the risk of potential remortgaging issues.


I'm not sure a remortgage would be an option if you was unemployed? I'm sure a bank would adopt unsuitable criteria to your application with limited income. I live by myself, so it would be a sole application
If house prices take a drop you may not be able to mortgage at a preferential rate later. I.e. what would have been 60% LTV could become 80% LTV. Or worse you may be in negative equity and unable to remortgage. Rates dont just fluctuate you need to factor in house price movement.
daydreamer0122/05/2020 11:21

It would be nice if there were mortgage deals other than 60% LTV ones. …It would be nice if there were mortgage deals other than 60% LTV ones. Banks are being too greedy.


There are.... also about 3% to lend a couple of hundred thousand... so on a mortgage of £200k they make £6k a year. That has to go to ‘acquire’ the money, fixed costs like staff and offices and cover any losses and bad debts... etc

(A bad loan of £1m to a company, would take them 166 of the above mortgages to make up if there was no other costs! But more likely 4-500 after all the costs )

remember the days when interest was at 16% plus margin....

I say if you can, make hay, but borrow responsibly. 😜
M_z22/05/2020 11:10

That's possible, but can't see it happening in reality as everyone will …That's possible, but can't see it happening in reality as everyone will withdraw their cash and hide it in their house - good news for burglars though.


Big businesses can't and won't withdraw the money.
slannmage22/05/2020 11:30

The next year will be a huge economic crash, interest rates will hit 0.


BOE base rate is currently 0.1% so zero won't do Jack. Japan and South Korea have gone neg rates in the past where your actually penalised for having savings, the idea being that everyone goes out buying new cars, kitchens, bathrooms, holidays etc hence pumping the economy out of depression, but if there's no confidence peeps will pour into gold which will just cause a price bubble there or prop up the bed with cash if house insurance will cover life savings for fire flood theft etc. Either way post corona gonna mean spending cuts and higher taxes. House prices will slip. Credit scoring already in turmoil, no idea how the banks are scoring mortgages at the mo
jsd7422/05/2020 15:13

BOE base rate is currently 0.1% so zero won't do Jack. Japan and South …BOE base rate is currently 0.1% so zero won't do Jack. Japan and South Korea have gone neg rates in the past where your actually penalised for having savings, the idea being that everyone goes out buying new cars, kitchens, bathrooms, holidays etc hence pumping the economy out of depression, but if there's no confidence peeps will pour into gold which will just cause a price bubble there or prop up the bed with cash if house insurance will cover life savings for fire flood theft etc. Either way post corona gonna mean spending cuts and higher taxes. House prices will slip. Credit scoring already in turmoil, no idea how the banks are scoring mortgages at the mo



It's what happens when you have government intervention, it all goes to crap. They've been subsidising everything... like with Electric Cars, they're paying out crazy amounts for something that isn't self sufficient. They need to let the market come to it, they cannot force it... and they're trying to with all the taxes they put on us with made up BS.

I wonder why we have a house issue? I mean Leasehold might have something to do with it. 400K people into the country each year might have something to do with it.... which 6 million migrants since 2001, no wonder why our services cannot cope.

It's not hard to find the issues, but the government are too worried about the media to take any action.
slannmage22/05/2020 15:26

It's what happens when you have government intervention, it all goes to …It's what happens when you have government intervention, it all goes to crap. They've been subsidising everything... like with Electric Cars, they're paying out crazy amounts for something that isn't self sufficient. They need to let the market come to it, they cannot force it... and they're trying to with all the taxes they put on us with made up BS. I wonder why we have a house issue? I mean Leasehold might have something to do with it. 400K people into the country each year might have something to do with it.... which 6 million migrants since 2001, no wonder why our services cannot cope. It's not hard to find the issues, but the government are too worried about the media to take any action.


The housing crisis first started when the UK stopped building council houses in the mid 70's. Look at graphs of average House prices from 1950's to today and you'll see house price inflation went ape after housing was left alone to the private sector. This resulted in us having less and less disposable income which led to personal credit and that crashed in 2008. Now milennials can't afford houses or personal credit. The banks are skint and are now targeting parents equity through these pathetic and desperate springboard mortgages. The TV adverts are now targeting a largely desperate population through gambling and bingo adverts. And yes brexit was caused by the Blair government failing to get max free movement quotas when the Eastern block joined the EU in 2004. And while all this has been going on the wealth of the global elite has doubled to trebled..........
bantamdave3322/05/2020 11:21

For myself it's a balancing act. The 1.69% im chasing (ERC ) will mean …For myself it's a balancing act. The 1.69% im chasing (ERC ) will mean a payment of just £292 a month payment (£62k mortgage). If mortgage rates drop to say 1%, a payment of £273. Saves £19.However, as many, I'm nervous of the job market scenario and as I work in leisure, some doubts have to exist. Thus if my job was to go and I had re-employment issues, at the SVR, I'm up to £335 per month, with reduced income, employability and financial security.I think I have made my mind up that I would rather risk the £19 against a SVR (I know potentially that would go down) with a lock in rate.


Good post.
This is a simple ABC risk vs reward calculation that most people don't quite understand. Peace of mind either is or is not something people are prepared to pay for depending on individual circumstances. As a general.rule when banks offer deals.on longer fixed rates it's because their EXPERTS who process large data conclude that rates will not rise during that period, however nothing of course is ironclad
Edited by: "FlahertyDeals" 23rd May
drdoom2k22/05/2020 11:17

FYI, Barclays launched new 85% ltv products this morning, interestingly at …FYI, Barclays launched new 85% ltv products this morning, interestingly at higher rates relative to before Corona crisis (think 2.1% vs 1.9% earlier this year). So much for waiting for the rates to drop, don't think any bank will push for lower interest rates on mortgages at that level any time soon


Didn’t know, although I check their rates nearly every day. It was 2.3% for 90% LTV. Slowly they’re lending to higher LTV’s and the more lenders come back in the marketplace the cheaper the rates will be although house price uncertainty will still keep above 2.1% in my opinion. Trying to balance desperate sellers and being able to get a mortgage as a FTB at the minute whilst hoping rates are lower than mid-March!
tapi22/05/2020 11:14

I know there's also cashback on one of the barclays accounts too, so you …I know there's also cashback on one of the barclays accounts too, so you pay a tenner for the current account and get 13 back for having a mortgage. Anyone know the exact details?


I pay £4 a month and I get £7 back for 2 direct debits, the mortgage bonus is £5 so net would be £8 a month.
fredflintstone1122/05/2020 18:51

Didn’t know, although I check their rates nearly every day. It was 2.3% f …Didn’t know, although I check their rates nearly every day. It was 2.3% for 90% LTV. Slowly they’re lending to higher LTV’s and the more lenders come back in the marketplace the cheaper the rates will be although house price uncertainty will still keep above 2.1% in my opinion. Trying to balance desperate sellers and being able to get a mortgage as a FTB at the minute whilst hoping rates are lower than mid-March!


Last bit of spam for anyone else in a similar boat to me, based on the uplifts from the higher 5% LTV increases (0.18%) and factoring in the 0.2% uplift for no fees, a no fee 90% LTV would be 2.33% which would be slightly more than pre-COVID. This would be in line with say HSBC’s no fee offering.
bengalknights22/05/2020 11:06

The big question will negative interest rates mean we get paid to take out …The big question will negative interest rates mean we get paid to take out mortgages???


It happened in Denmark last year (see here). 10 year fix at -0.5%!
Yet to understand why anyone wouldn't use a local independent broker
tapi22/05/2020 11:14

I know there's also cashback on one of the barclays accounts too, so you …I know there's also cashback on one of the barclays accounts too, so you pay a tenner for the current account and get 13 back for having a mortgage. Anyone know the exact details?


I pay a fee of £4 a month and get £12 for having a mortgage with them
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