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Nationwide 5 year Fixed Mortgage - 1.59% - £999 booking fee - 75% LTV @ Nationwide
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Nationwide 5 year Fixed Mortgage - 1.59% - £999 booking fee - 75% LTV @ Nationwide

169
Posted 12th May
My term was ending by the 31st of May, some may argue that interests rates may go down further but I thought it was a sweet deal considering HSBC requires 60% LTV to match the same rate. I chose to add the fee to the loan as the interest went up by only £74 over the 5 years.
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Deal editor
Thanks for posting @Mizanul_Karim

Nationwide have reduced some of their fixed rate mortgages recently in line with other lenders, the 75% LTV deal on a 5 year fixed rate mortgage may suit for those with a reasonable amount of equity.

5 Year Fixed - 1.59% rate and £999 fee - 75% LTV


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5 Year Fixed - 1.44% rate and £999 fee - 60% LTV

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(ERC) if you overpay by more than 10% of your original mortgage balance in a year, or if you exit your mortgage early.

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 (5 x 12 = 60 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.
Same rate and LTV with a £490 fee at first direct.

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Top comments
steve123uk12/05/2020 13:38

But the 'arrangement fee' does not reflect the actual arrangement. £499, …But the 'arrangement fee' does not reflect the actual arrangement. £499, £795, £999 even seen £1499 arrangement feesIt costs EXACTLY the same to 'arrange'


Doesn't matter what I am paying it for if it costs me less money overall then I couldn't care less even if they wanted to name it "Directors bonus fund".
chridt12/05/2020 12:55

Hey can I borrow some moneyYes of course are you ok to pay interest?Yeah …Hey can I borrow some moneyYes of course are you ok to pay interest?Yeah that’s expected Oh and I’ll charge you £999 just because tooYeah,I’m out!Seriously when will people wake up the these false low aprs being offered that are nothing more than shifting cost onto a fee to make the APR look pretty


Depends on the size of the mortgage though doesn't it?

If you are borrowing £75k then £999 isn't going to be worth it.

If you are borrowing £750k then £999 is probably worth paying to get the lower interest rate.

Extreme examples but I am sure you get the point.
Hey can I borrow some money
Yes of course are you ok to pay interest?
Yeah that’s expected
Oh and I’ll charge you £999 just because too
Yeah,I’m out!

Seriously when will people wake up the these false low aprs being offered that are nothing more than shifting cost onto a fee to make the APR look pretty
Stoofa12/05/2020 12:54

Never add fees to a mortgage and never look at the interest rate without …Never add fees to a mortgage and never look at the interest rate without factoring that fee in.It doesn't sound like much, £999 compared to the cost of your mortgage - but compare to the feeless options.


I would say that if your mortgage supports free overpayments then adding the fee to the mortgage could be sensible if you just pay it off immediately up on getting the product, as most fees are non-refundable if you was to pay the fee upfront then the deal falls through you could potentially lose the fee, where as the fee isn't charged until the deal is sealed if you add it on so its a little extra protection. Of course this is all dependant on different banks T's&C's and is by no means a blanket statement, always read the fine print
169 Comments
its good but still HSBC & Llyods have better rates currently (im with nationwide)
Good for a high street bank, but you tend to get those rates with online only banking.
This may be good for those who still have lots left to pay. In my case, I'm worse off with the upfront fee.
Never add fees to a mortgage and never look at the interest rate without factoring that fee in.
It doesn't sound like much, £999 compared to the cost of your mortgage - but compare to the feeless options.
Hey can I borrow some money
Yes of course are you ok to pay interest?
Yeah that’s expected
Oh and I’ll charge you £999 just because too
Yeah,I’m out!

Seriously when will people wake up the these false low aprs being offered that are nothing more than shifting cost onto a fee to make the APR look pretty
Stoofa12/05/2020 12:54

Never add fees to a mortgage and never look at the interest rate without …Never add fees to a mortgage and never look at the interest rate without factoring that fee in.It doesn't sound like much, £999 compared to the cost of your mortgage - but compare to the feeless options.


I would say that if your mortgage supports free overpayments then adding the fee to the mortgage could be sensible if you just pay it off immediately up on getting the product, as most fees are non-refundable if you was to pay the fee upfront then the deal falls through you could potentially lose the fee, where as the fee isn't charged until the deal is sealed if you add it on so its a little extra protection. Of course this is all dependant on different banks T's&C's and is by no means a blanket statement, always read the fine print
chridt12/05/2020 12:55

Hey can I borrow some moneyYes of course are you ok to pay interest?Yeah …Hey can I borrow some moneyYes of course are you ok to pay interest?Yeah that’s expected Oh and I’ll charge you £999 just because tooYeah,I’m out!Seriously when will people wake up the these false low aprs being offered that are nothing more than shifting cost onto a fee to make the APR look pretty


Depends on the size of the mortgage though doesn't it?

If you are borrowing £75k then £999 isn't going to be worth it.

If you are borrowing £750k then £999 is probably worth paying to get the lower interest rate.

Extreme examples but I am sure you get the point.
Horrorwood12/05/2020 13:27

Depends on the size of the mortgage though doesn't it?If you are borrowing …Depends on the size of the mortgage though doesn't it?If you are borrowing £75k then £999 isn't going to be worth it.If you are borrowing £750k then £999 is probably worth paying to get the lower interest rate.Extreme examples but I am sure you get the point.


But the 'arrangement fee' does not reflect the actual arrangement.

£499, £795, £999 even seen £1499 arrangement fees

It costs EXACTLY the same to 'arrange'
steve123uk12/05/2020 13:38

But the 'arrangement fee' does not reflect the actual arrangement. £499, …But the 'arrangement fee' does not reflect the actual arrangement. £499, £795, £999 even seen £1499 arrangement feesIt costs EXACTLY the same to 'arrange'


Doesn't matter what I am paying it for if it costs me less money overall then I couldn't care less even if they wanted to name it "Directors bonus fund".
Hsbc have that rate with no fee btw.
I renewed & started a 10 year fixed rate last summer. Anyone know how much Nationwide will charge to cancel & switch? I think I checked on their website before & it was a very large fee but just want to double check (hoping to be wrong!)
chridt12/05/2020 12:55

Hey can I borrow some moneyYes of course are you ok to pay interest?Yeah …Hey can I borrow some moneyYes of course are you ok to pay interest?Yeah that’s expected Oh and I’ll charge you £999 just because tooYeah,I’m out!Seriously when will people wake up the these false low aprs being offered that are nothing more than shifting cost onto a fee to make the APR look pretty


The apr is inclusive of all fees and also spending the remainder of your term on the SVR. Apr is a way to compare mortgages
chridt12/05/2020 12:55

Hey can I borrow some moneyYes of course are you ok to pay interest?Yeah …Hey can I borrow some moneyYes of course are you ok to pay interest?Yeah that’s expected Oh and I’ll charge you £999 just because tooYeah,I’m out!Seriously when will people wake up the these false low aprs being offered that are nothing more than shifting cost onto a fee to make the APR look pretty


It's not as simple as that though. I agree that for most "smaller" mortgages definitely don't pay a product fee.

But for those with bigger mortgages it can be worth it. Aslong as your saving more than the product fee over the term it's worth it. Just need to do a simple % calculation
tonez12/05/2020 13:52

I renewed & started a 10 year fixed rate last summer. Anyone know how much …I renewed & started a 10 year fixed rate last summer. Anyone know how much Nationwide will charge to cancel & switch? I think I checked on their website before & it was a very large fee but just want to double check (hoping to be wrong!)


You will pay a fee. The agreement works both ways unfortunately
samspud12/05/2020 13:54

You will pay a fee. The agreement works both ways unfortunately


Yep but I'm wondering how much...

Paying a fee could still be worth cancelling & switching if there's a saving to be made over nine years. All depends on the size of the fee...
tonez12/05/2020 13:56

Yep but I'm wondering how much...Paying a fee could still be worth …Yep but I'm wondering how much...Paying a fee could still be worth cancelling & switching if there's a saving to be made over nine years. All depends on the size of the fee...


Normally it's not. They tend to tier it -

3% year 3
2% year 2
1% year 1 etc etc

Check your paperwork or call them and they'll tell you. It's pretty standard
tonez12/05/2020 13:52

I renewed & started a 10 year fixed rate last summer. Anyone know how much …I renewed & started a 10 year fixed rate last summer. Anyone know how much Nationwide will charge to cancel & switch? I think I checked on their website before & it was a very large fee but just want to double check (hoping to be wrong!)



Likely to be a falling interest rate based on size of your mortgage.
Cold, HSBC rate with same fee & LTV is 5bps cheaper
Thank you both!
There are better rates available
No need to quibble Martin Lewis has done the hard work for everone. What a guy(cheeky) L@@k here
tonez12/05/2020 13:52

I renewed & started a 10 year fixed rate last summer. Anyone know how much …I renewed & started a 10 year fixed rate last summer. Anyone know how much Nationwide will charge to cancel & switch? I think I checked on their website before & it was a very large fee but just want to double check (hoping to be wrong!)


We're with Nationwide, our deal is just about to end. This was a letter they sent a week or so ago, you'd pay 7%40722999-tGRGG.jpg
jade372112/05/2020 14:18

We're with Nationwide, our deal is just about to end. This was a letter …We're with Nationwide, our deal is just about to end. This was a letter they sent a week or so ago, you'd pay 7%[Image]


Thank you for this!

My LTV is around 40% or less (depending on how they value my home), does it give a lower charge?

I think it's going to be too high anyway if the charge is 7% of the outstanding mortgage.

Thanks again
tonez12/05/2020 14:22

Thank you for this!My LTV is around 40% or less (depending on how they …Thank you for this!My LTV is around 40% or less (depending on how they value my home), does it give a lower charge?I think it's going to be too high anyway if the charge is 7% of the outstanding mortgage.Thanks again


House prices are likely to fall, so I guess it's trying to ascertain whether the drop in interest rate is better for you than the loss in value in your house since you last took out the mortgage, and the fee. What % are you paying at the moment? Would you add the 7% to a new mortgage?
tonez12/05/2020 13:56

Yep but I'm wondering how much...Paying a fee could still be worth …Yep but I'm wondering how much...Paying a fee could still be worth cancelling & switching if there's a saving to be made over nine years. All depends on the size of the fee...


Surely the quickest and easiest way to find out is to ask them,i doubt they will but if they think you will still go else where they just maybe inclined to offer something.I doubt it but theres nothing to lose and they cant penalise you for thinking of moving.
Horrorwood12/05/2020 13:27

Depends on the size of the mortgage though doesn't it?If you are borrowing …Depends on the size of the mortgage though doesn't it?If you are borrowing £75k then £999 isn't going to be worth it.If you are borrowing £750k then £999 is probably worth paying to get the lower interest rate.Extreme examples but I am sure you get the point.


Not extreme at all, both perfectly valid and common cases.
I'm in the middle of arranging my next 5 year mortgage as my current one ends in a couple of month, and the best I was quoted was HSBC at 1.59% and no arrangement fee, but I guess it depend on the LTV whether you can get that (Mine is now under 40%)
Here is a lower rate with HSBC 75% LTV:
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Edited by: "kieran77777" 12th May
I get 1.39% on 5 year fixed with fee on 59% LTV on their site.

Coming out of a fixed term with them in the next couple of months too.
Edited by: "Rob." 12th May
Hi can anyone offer me some advice? my Santander 5yr fix is up in September and i want to pay off the remaining balance to clear the mortgage. Do i want to sign up to a tracker mortgage (which have no EPC charges) and just make one overpayment as soon as it starts?
I swear, every time my deal is about to end, Im told the rates are going to go up, and inevitably they go down! Just signed onto a new 5 year fixed in October, for 2%, that was with 60% LTV.
Same thing happened last time round 5 years ago.
I'd never use NW for a mortgage again, after being ripped off by £800 on a early settlement fee...robbing bar stewards
chridt12/05/2020 12:55

Hey can I borrow some moneyYes of course are you ok to pay interest?Yeah …Hey can I borrow some moneyYes of course are you ok to pay interest?Yeah that’s expected Oh and I’ll charge you £999 just because tooYeah,I’m out!Seriously when will people wake up the these false low aprs being offered that are nothing more than shifting cost onto a fee to make the APR look pretty


Surely you would just work out the entire cost over the term and go with the cheapest overall? If that meant a weird £999 fee hidden somewhere in the cheapest overall product then who cares??

It'd be better not for lenders to do this and price so it's easier to compare, but shouldn't be a problem for most people who own a calculator.
Dobsie12/05/2020 15:39

Hi can anyone offer me some advice? my Santander 5yr fix is up in …Hi can anyone offer me some advice? my Santander 5yr fix is up in September and i want to pay off the remaining balance to clear the mortgage. Do i want to sign up to a tracker mortgage (which have no EPC charges) and just make one overpayment as soon as it starts?


If you're unsure what will work out best for your plans, speak to a broker. Money Saving Expert recommend L&C who are free - I've used them 3 times now, twice I've gone through with their recommended deal and once stuck with my current lender which worked out £100 more, but no paperwork/hassle involved which at the time was the better option for us. All times they've given great advice.
Surely if you don’t get the fee back over the fixed term it’s not worth paying ?
Dobsie12/05/2020 15:39

Hi can anyone offer me some advice? my Santander 5yr fix is up in …Hi can anyone offer me some advice? my Santander 5yr fix is up in September and i want to pay off the remaining balance to clear the mortgage. Do i want to sign up to a tracker mortgage (which have no EPC charges) and just make one overpayment as soon as it starts?


You don't need to sign up to anything. Ask them when the deal ends and pay it off on the day. If you tell them what day you are thinking of paying it off, they can calculate the exact redemption value.
Well done for paying off the mortgage. Must be a fantastic feeling.
benhan8912/05/2020 16:23

Surely you would just work out the entire cost over the term and go with …Surely you would just work out the entire cost over the term and go with the cheapest overall? If that meant a weird £999 fee hidden somewhere in the cheapest overall product then who cares??It'd be better not for lenders to do this and price so it's easier to compare, but shouldn't be a problem for most people who own a calculator.


You don’t even need the calculator. All the mortgage sites including nationwidewill let you type in your mortgage amount and it will show you the ‘initial term cost’ so you can just directly compare
benhan8912/05/2020 16:23

Surely you would just work out the entire cost over the term and go with …Surely you would just work out the entire cost over the term and go with the cheapest overall? If that meant a weird £999 fee hidden somewhere in the cheapest overall product then who cares??It'd be better not for lenders to do this and price so it's easier to compare, but shouldn't be a problem for most people who own a calculator.


With our last remortgage we had to stick with our current lender so had a limited number of options which on paper all looked quite different in terms of rates and fees. Once you worked it all out there was very little difference between most of them over the full term, then maybe 1 or 2 that were only slightly better/worse for our situation. However, for someone else's situation the deals could have come out completely different. It really depends on how much you're borrowing, if you have cash to add etc etc.

While it seems complicated and like the bank are trying to tempt you into a low interest deal which is actually a better deal for them, they are just trying to offer a wide range of deals that will suit a broad range of customers and their unique situations. If they offered one simple deal, they might lose customers to another bank as it won't suit everyone.

Anyway, one thing to consider is often the mortgage fee is paid upfront, and right now that's probably quite risky as I'm sure many purchases are falling through right now and that's your fee down the drain.
chridt12/05/2020 12:55

Hey can I borrow some moneyYes of course are you ok to pay interest?Yeah …Hey can I borrow some moneyYes of course are you ok to pay interest?Yeah that’s expected Oh and I’ll charge you £999 just because tooYeah,I’m out!Seriously when will people wake up the these false low aprs being offered that are nothing more than shifting cost onto a fee to make the APR look pretty


I remortgaged with Halifax in March at 1.54% with a £999 fee based on 70% LTV, but unhappy to pay the fee. I didn't have to pay for the legal fees or the £641 valuation, so would have been more had I needed to pay for these without the arrangement fee. I'm saving over £400 per month against the variable rate I had just been moved on to. Think of the bigger picture, I wouldn't lend someone hundreds of thousands of pounds and accept £400 interest as my only return
How is this deal any good, we just switched to Nationwide at 1.44% for 5 years £999 fee but £500 cash back. Approx £350 solicitors fees

Actually a bit harsh, yours is a good deal but I think mine is better
Edited by: "qwales" 12th May
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