N&P (Norwich and Peterborough Building society, 2 year fixed rate mortgage 1.99% with £195 fee, 65% LTV, nmuch better than HSBC deal
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N&P (Norwich and Peterborough Building society, 2 year fixed rate mortgage 1.99% with £195 fee, 65% LTV, nmuch better than HSBC deal

26
Found 3rd Sep 2014
Describe the deal in your own words and explain to members why it is a good deal! Please don't just paste in marketing text or specs.

Remember: this is a community site, self-promotion may result in a ban! If you are connected to the company you're posting for, please contact us.Having seen the HSBC deal hit 400 degrees after I showed a better deal @ 60 degrees I thought id point people in the direction of N&P,

3 reasons its better

Better rate 1.99% Vs 2.19% (ie £200 PA on a £100k interest only mortgage or £400 on a £200k interest only)

Higher LTV criteria 65% Vs 60% (opem to more people)

Higher overpayments, 10% of balance or max £10k (ie a considerable overpayment) HSBC is 20% of repayments (example on a £100k mortgage with £500 PM repayments HSBC will let you overpay 20% (£100) or £1200 PA, N&P would allow you to pay off a maxium of £10k…

Yes fee is £195 Vs £0 although see the savings on rate above, on a £100k mortgage you would save £400 over 2 years so still £205 better off, bigger the mortgage.. Bigger the saving

26 Comments

Good deal if you want to switch to a lower rate mortgage however, if you are already a HSBC customer they offer 2yrs fixed rate @ 2.49% NO FEES with online application which takes 20 minutes. Mortgage switched same day without all the hassle!

Thank you for posting.... Heat added

HSBC is now 2.19%, not 2.49%, for remortgages.

A significant negative I see for this 1.99% rate is the follow-on rate which is slightly over 1% higher.

If someone found that their property value dropped putting them on a poorer LTV or they missed a credit card payment over the two years making it difficult to remortgage, they could be stuck on a very poor rate.

Of course, the SVR could change for either lender over that time.

I'm not saying that this is a bad deal and I'm voting hot - but it's worth considering this when applying - especially for mortgages below £100,000 where the savings aren't AS significant.

By the way, if you're considering overpayments whilst on a 1.99% rate, you should look at some of the current account offerings available too. You'll get 2.4% after tax on up to £20k in a Santander 123 account.

You'd be better saving there, or in a similar account, and overpaying the whole lot at the end of the 2-year fix. It also gives you a lot of flexibility should you need to withdraw your overpayments for anything.

The 2.4% referred to above is for lower-rate taxpayers

Original Poster

marathonic

By the way, if you're considering overpayments whilst on a 1.99% rate, … By the way, if you're considering overpayments whilst on a 1.99% rate, you should look at some of the current account offerings available too. You'll get 2.4% after tax on up to £20k in a Santander 123 account. You'd be better saving there, or in a similar account, and overpaying the whole lot at the end of the 2-year fix. It also gives you a lot of flexibility should you need to withdraw your overpayments for anything.



Yep, already there lol

0.4% on £20k is £80 PA, better than nolt I suppose lol

Cold, not available in Scotland.

the t&cs say that the 65% LTV is calculated on the current value or the purchase price (whichever is lower).

This is a concern. My current value will be much higher than the purchase price. I will not be able to achieve the LTV if the calculation uses the purchase price.

Original Poster

Superstarbeejay

the t&cs say that the 65% LTV is calculated on the current value or the … the t&cs say that the 65% LTV is calculated on the current value or the purchase price (whichever is lower).This is a concern. My current value will be much higher than the purchase price. I will not be able to achieve the LTV if the calculation uses the purchase price.



That means if you are purchasing it now.. Basically if a Valuation comes in lower than purchase price they will only lend against valuation..

It wouldnt affect you if you bought property years ago
Edited by: "dodgymix" 3rd Sep 2014

Original Poster

Rbluesy123

Cold, not available in Scotland.



Vote yes and nothing will

Rbluesy123

Cold, not available in Scotland.


Did you think this through? Does that mean for those who are not a home owner, have no wish to be, already paid their mortgage, don't qualify under the 65%LTV or... then vote cold? Doing so could mean that a great many could miss out Credit to op, a hot from me!

For your "better than HSBC argument", you've not factored in the rate after the 2-year fix ends.

Yes you may save a few hundred pounds during the 2-year fix, but will pay much more when the fix ends as it reverts to a much larger 4.99% (which may rise between now and fix-end), so if you can't find another deal after 2 years, you're stuck on a higher interest rate than the HSBC deal...

Think I'll stick to my hsbc tracker at 2% base rate ain't going up for some time??no mortgage left before it hits a long term average of 3%

Appears to be cheap deal compared to mainstream banks, but can anyone find any hidden charges?

I could be tempted to ditch my 2% + BR lifetime mortgage for something like this if it was 4 or 5 years, but 2 years? It's hardly worth the hassle for me. I do like the flexibility of having to option to overpay by large amounts if I want at present.

When switching mortgage to a new provider, must you provide recent payslips as proof of income, or is evidence of having timely paid current mortgage sufficient?

Dodgy by name, dodgy by nature - says it all really X)

dodgymix

Vote yes and nothing will

Original Poster

wildecat

Dodgy by name, dodgy by nature - says it all really X)




Congratulations.. youve posted 1 deal in nearly 4 years.

No worries anyhow, soon the Scottish contingent will need to find their own website as this is Hot UK deals lol

You might want to amend title/description to include the fact they also offer offsets at this rate.

dodgymix

Vote yes and nothing will



haha

I went for a 5 yr fixed a year ago, hopefully will save in the long run if interest rates go up

Hmm will stay on my 1.49% tracker which is years old now

garryspight

Hmm will stay on my 1.49% tracker which is years old now



If you're on 1% above BOE base rate tracker mortgage you'd be mad to even swop for a cheaper modern mortgage, as most now track against the banks own SVR. I'd be extremely wary about such mortgages unless you have the equity/earnings to walk to another provider should the bank decide to squeeze some more money out of you by raising the SVR. Santander did exactly that in 2012, raising rates by 0.5%, ignoring BOE rate and the fact we were smack bang in a still faltering economy

The OP has missed the valuation fee, while I can't see what this is on the N&P site it is likely to more than wipe out the savings made over the HSBC deal that has free valuation. The fact that these fees are hidden would also put me of this deal.

Original Poster

myOpinion2

The OP has missed the valuation fee, while I can't see what this is on … The OP has missed the valuation fee, while I can't see what this is on the N&P site it is likely to more than wipe out the savings made over the HSBC deal that has free valuation. The fact that these fees are hidden would also put me of this deal.


Valuations are free

myOpinion2

The OP has missed the valuation fee, while I can't see what this is on … The OP has missed the valuation fee, while I can't see what this is on the N&P site it is likely to more than wipe out the savings made over the HSBC deal that has free valuation. The fact that these fees are hidden would also put me of this deal.

2 YEAR FIXED RATE MORTGAGE - SUMMARYVIEW THE FULL DETAILSBorrow up to 65% … 2 YEAR FIXED RATE MORTGAGE - SUMMARYVIEW THE FULL DETAILSBorrow up to 65% of the property value or purchase price (subject to criteria)Repayments are fixed for the first 2 yearsOption to overpay or underpay (subject to terms and conditions)Early repayment charges may applyMinimum loan £25,001Valuation fee paid by customer New borrowers only



Are sure their website says the following

Edited by: "myOpinion2" 8th Sep 2014

I've just found the details of the fees on the website here and confirmed speaking to one of their advisors.

There is a £90 non refundable booking fee retained by N&P and the valuation fees are as follows
Up to £75,000 £142
£75,001 - £100,000 £154
£100,001 - £150,000 £188
£150,001 - £200,000 £224
£200,001 - £250,000 £260
£250,001 - £350,000 £301
£350,001 - £500,000 £383

So for particularly large mortgages (over 300k) this deal might make sense but for the rest of us the HSBC deal is the better option. The initial post should also be update to reflect this as at the moment it's misleading not to include all the fees.
Edited by: "myOpinion2" 9th Sep 2014
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