M&S Bank. 90% LTV two-year fixed mortgage 2.09%, £995 fee, £1,000 cashback
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M&S Bank. 90% LTV two-year fixed mortgage 2.09%, £995 fee, £1,000 cashback

5
Found 26th Jan
M&S Bank have launched its first mortgage range and is particularly aiming at first-time buyers needing a high loan-to-value (LTV), although there are also products for movers and remortgagers.

One of the stand out deals is as follows:

  • Two-year fix at 2.09%
  • £995 fee
  • £1,000 cashback on completion (so eradicates the fee)
  • Free valuation
  • Max LTV 90%
  • Max term 30 years

There’s also a fee-saver option:

  • Two-year fix at 2.49%
  • No fee
  • £1,000 cashback
  • Free valuation
  • Max LTV 90%
  • Max term 30 years

Independent research by Moneycomms.co.uk (commissioned by M&S Bank) shows that this two-year fixed rate 90% LTV FTB mortgage ranks either first or second most competitive in the market across a range of mortgages up to £250k.

M&S is also offering a range of two and five-year fixed and tracker deals at varying LTVs. M&S mortgages are available direct with the bank and also through the broker channel, starting with London and Country.

My advice is to use a broker as they will be able to compare M&S mortgage deals against other lenders.

How to compare mortgages
As always, it’s important to calculate the total cost of a mortgage deal. You can do this by adding together the total monthly payments over the fixed period (2 x 12 = 24 payments in this case) then adding any product fee minus any cashback.
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5 Comments
Danske do a 95% LTV and give you up to £1500 back in cash if you take 150k mortgage at 3.85%. No fees.
Edited by: "Pure_Evil" 26th Jan
Pure_Evil41 m ago

Danske do a 95% LTV and give you up to £1500 back in cash if you take 150k …Danske do a 95% LTV and give you up to £1500 back in cash if you take 150k mortgage at 2.48%. No fees.



2.48% is for their 86% to 90% LTV. For the 91% to 95%, the rate is 3.85%. On a 150k mortgage, it would cost you around £5,200 more interest than the M&S deal over the two years. It works out better for the 86% to 90% range.
Edited by: "Master.G" 26th Jan
Can I make overpayments?
Yes, you can make overpayments of up to 10% of your mortgage balance in each year of the fixed rate period, without incurring an early repayment charge. If you exceed your annual overpayment allowance, an early repayment charge will be charged on the amount you have repaid above the 10% allowance. At the end of the fixed rate period, you are able to make unlimited overpayments.
Any early repayment charge applicable will be calculated based upon the percentage charge at the time of the overpayment as detailed within your European Standardised Information Sheet (ESIS) document.
Can I pay off the mortgage early?
If you fully repay your mortgage whilst you are in the fixed rate period you will incur an early repayment charge.
Details of the early repayment charge will be set out in your ESIS document.
Will I incur an exit fee?
No, we do not charge an exit fee.
Edited by: "scott2c" 26th Jan
Excellent deal if you only have a 10% deposit.

Although since UK rates are historically low I would recommending a fix with a larger deposit, maybe 20%, fixing for a much longer period - 5 or 10 years. Depends on your individual circumstances though I guess.
Edited by: "davewave" 26th Jan
Please make it clear they operate a discriminatory policy of only considering UK citizens for their mortgage applications regardless of the individual's financial health, responsibility or creditworthiness.
No deal is better than a bad deal.
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