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Santander 5 year fixed mortgage 1.44% & £649 booking fee - 60% LTV - inc free valuation & legal fees @ Santander
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Santander 5 year fixed mortgage 1.44% & £649 booking fee - 60% LTV - inc free valuation & legal fees @ Santander

Deal editor82
Deal editor
Posted 13th May
Spotted that Santander have added a 5 year fixed mortgage of 1.44% with 60% LTV and £649 booking fee, 5bps lower than the previous offer. This is specifically for remortgages and online only. This also includes free valuation and standard legal fees paid. This deal may suit someone looking to remortgage, with a high level of equity.


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60% Maximum Loan to Value (LTV) - 5 Year Fixed Rate 1.44% £649 booking fee (remortgage)

  • 5 year fixed rate 1.44% rate with 60% LTV
  • £649 booking fee
  • Free valuation and standard legal fees paid
  • Early repayment charge - 5% plus legal fees

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.
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sam197013/05/2020 12:36

Iam sorry but 3.49% three years ago is a very bad deal. I fixed 3 years …Iam sorry but 3.49% three years ago is a very bad deal. I fixed 3 years ago, for 5 years, at 1.79% with Santander and still feel annoyed that Iam stuck with it for two more years.


You don't know what their circumstances are so you can't make a baseless comment like that. They might be at 90% LTV, it might be a help to buy mortgage that typically have higher rates. Too many variables to simply say 3.49% three years ago is a bad deal without knowing any more about it.
I personally decided against a 5 year fix with santander due to their ERC. This must be paying for the lower rate vs the competition,fair play.

shout out to:
locostfireblade.co.uk/spr…tml

For any one who wants to do their own 'real' mortgage comparisons. Yet to find a better alternative.

My crystal ball says low rates are here to stay Japan Style. USA could go negative bloomberg.com/new…tes
Edited by: "Mars104" 13th May
matedodgy13/05/2020 14:38

My 5 year fix ends on 1st June 2020 - just 2 more weeks to go until I can …My 5 year fix ends on 1st June 2020 - just 2 more weeks to go until I can shop around.I really think these kind of deals are as low as the economy can go (without going into deflation!).Banks have to have their cut must be so small now. Not that I care about how much money banks make, but I don't think rates can fall interest further. The only way is up as Yazz said - but the question is WHEN...So with my crystal ball, I think a couple of years of low interest rates followed by a rise (small or modest) is on the cards.Our membership of the EU and their orthodoxy in economic policy kept economies pretty much in the doldrums (low to modest growth but safe interest rates).Now we've left, Boris will turn his attention to those elusive Brexit trade deals - I am guessing that will be inflationary. But Austerity 2.0 for the next decade or more is here which will be deflationary.It's a bad time to make a mortgage prediction.


Why would you wait to shop around? You can to search 3-6 months in advance and get ready to move from 1st June. Otherwise you'll revert to the hideous 3.5-4.5% standard rate. Start looking now!
Sunny_R13/05/2020 13:17

Thanks 🙏, but how exactly does this negative interest rate works in …Thanks 🙏, but how exactly does this negative interest rate works in mortgage ? :/


theguardian.com/mon…age

We probably won't see negative rates on our mortgages. However it would encourage even more lending and lower rates on mortgages. Might inflate house prices further. If you can't grow the economy with productivity grow it with debt ;-)
Edited by: "Mars104" 13th May
82 Comments
All these deals popping up and I’m stuck at 3.49% until 2022 . And I was thinking I got a good deal 3 yrs ago . How times have changed . Just wondering if anyone has crystal ball 🔮 ? It’s better to pay ERC and get better rate or wait until 2022 and get new deal ? What is the general consensus among HUKD experts ?
Sunny_R13/05/2020 12:27

All these deals popping up and I’m stuck at 3.49% until 2022 . And I was t …All these deals popping up and I’m stuck at 3.49% until 2022 . And I was thinking I got a good deal 3 yrs ago . How times have changed . Just wondering if anyone has crystal ball 🔮 ? It’s better to pay ERC and get better rate or wait until 2022 and get new deal ? What is the general consensus among HUKD experts ?



We'd need the ERC cost at your time in the mortgage and the amount of the mortgage to work that out
Sunny_R13/05/2020 12:27

All these deals popping up and I’m stuck at 3.49% until 2022 . And I was t …All these deals popping up and I’m stuck at 3.49% until 2022 . And I was thinking I got a good deal 3 yrs ago . How times have changed . Just wondering if anyone has crystal ball 🔮 ? It’s better to pay ERC and get better rate or wait until 2022 and get new deal ? What is the general consensus among HUKD experts ?


Iam sorry but 3.49% three years ago is a very bad deal. I fixed 3 years ago, for 5 years, at 1.79% with Santander and still feel annoyed that Iam stuck with it for two more years.
I personally decided against a 5 year fix with santander due to their ERC. This must be paying for the lower rate vs the competition,fair play.

shout out to:
locostfireblade.co.uk/spr…tml

For any one who wants to do their own 'real' mortgage comparisons. Yet to find a better alternative.

My crystal ball says low rates are here to stay Japan Style. USA could go negative bloomberg.com/new…tes
Edited by: "Mars104" 13th May
HottUKDealer13/05/2020 12:32

We'd need the ERC cost at your time in the mortgage and the amount of the …We'd need the ERC cost at your time in the mortgage and the amount of the mortgage to work that out


It’s 2 % . And I have around £150k left to pay . I had borrowed £210k so not sure whether it’s 2% of the original amount or whatever is left .
sam197013/05/2020 12:36

Iam sorry but 3.49% three years ago is a very bad deal. I fixed 3 years …Iam sorry but 3.49% three years ago is a very bad deal. I fixed 3 years ago, for 5 years, at 1.79% with Santander and still feel annoyed that Iam stuck with it for two more years.


That was the best available to me . I’m relatively new to this mortgage malarkey and 5 yrs ago I had as first time buyer taken mortgage with nationwide of £240k at 4.59% but we had very bad experience with them so was determined to move at any cost so moved to first direct for around 3.49% three yrs ago on 5 yrs fix paying around £8k ECR. So now feeling bit stuck 😁 as don’t what to pay another ECR .
sam197013/05/2020 12:36

Iam sorry but 3.49% three years ago is a very bad deal. I fixed 3 years …Iam sorry but 3.49% three years ago is a very bad deal. I fixed 3 years ago, for 5 years, at 1.79% with Santander and still feel annoyed that Iam stuck with it for two more years.


You don't know what their circumstances are so you can't make a baseless comment like that. They might be at 90% LTV, it might be a help to buy mortgage that typically have higher rates. Too many variables to simply say 3.49% three years ago is a bad deal without knowing any more about it.
Anyone else that got the 2.39%? HSBC 10 year fixed deal starting to regret locking in for so long yet?
Edit: Just checked and 10 year deal is £1090 a month compared to £1105 a month we currently pay so don't feel as bad.
Edited by: "escortboy" 13th May
Sunny_R13/05/2020 12:27

All these deals popping up and I’m stuck at 3.49% until 2022 . And I was t …All these deals popping up and I’m stuck at 3.49% until 2022 . And I was thinking I got a good deal 3 yrs ago . How times have changed . Just wondering if anyone has crystal ball 🔮 ? It’s better to pay ERC and get better rate or wait until 2022 and get new deal ? What is the general consensus among HUKD experts ?


You can figure out the premium sticking vs switching and factor in ERC. It will very much depend on the size of your mortgage and erc.

If your mortgage was say 200k (25Yr repayment mortgage) and had exactly 2 years left on your deal period then i think this santander mortgage would be about 7.5k better over 2 years (taking into account cost over 2 years and capital remaining) . So the erc would need to be higher than this for me to stay if I were happy to accept with santander's erc conditions.
Edited by: "Mars104" 13th May
Mars10413/05/2020 12:50

I personally decided against a 5 year fix with santander due to their ERC. …I personally decided against a 5 year fix with santander due to their ERC. This must be paying for the lower rate vs the competition,fair play.shout out to:http://www.locostfireblade.co.uk/spreadsheet/Index.htmlFor any one who wants to do their own 'real' mortgage comparisons. Yet to find a better alternative. My crystal ball says low rates are here to stay Japan Style. USA could go negative https://www.bloomberg.com/news/articles/2020-05-12/trump-says-u-s-deserves-gift-of-negative-interest-rates


Thanks 🙏, but how exactly does this negative interest rate works in mortgage ? :/
Mars10413/05/2020 13:15

You can figure out the premium sticking vs switching and factor in ERC. It …You can figure out the premium sticking vs switching and factor in ERC. It will very much depend on the size of your mortgage and erc. If your mortgage was say 200k (25Yr mortgage) and had exactly 2 years left on your deal period then i think this santander mortgage would be about 9k better over 2 years (taking into account cost over 2 years and capital remaining) . So the erc would need to be higher than this for me to stay.


Thank you . I think ECR would be around £4K .
cheer B's

see below mortgage offer condition

ST0006 We reserve the right to withdraw or amend the Offer if there is a change to the condition, value or title to the property, or we revalue the property after the date of this Offer and, such change or revaluation, has a material impact on the suitability of the property as security for the loan.
5% ERC for the whole term and to repay legals too. Coupd be costly so make sure nothing will change in your circumstances. Very high ERC tbh. Think mortgage rates will creep down nothing worse than locking in to see the rate drop
Sunny_R13/05/2020 13:17

Thanks 🙏, but how exactly does this negative interest rate works in …Thanks 🙏, but how exactly does this negative interest rate works in mortgage ? :/


theguardian.com/mon…age

We probably won't see negative rates on our mortgages. However it would encourage even more lending and lower rates on mortgages. Might inflate house prices further. If you can't grow the economy with productivity grow it with debt ;-)
Edited by: "Mars104" 13th May
Mars10413/05/2020 13:30

https://www.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgageWe probably won't see negative rates on our mortgages. However it would encourage even more lending and lower rates on mortgages. Might inflate house prices further. If you can't grow the economy with productivity grow it with debt ;-)


Ok thanks , 😁
The lowest 5 Yr fixed it's showing for me is 1.49% :/
cmcd6913/05/2020 13:54

The lowest 5 Yr fixed it's showing for me is 1.49% :/




The option shows if you select 'remortgaging to us'
👌
My 5 year fix ends on 1st June 2020 - just 2 more weeks to go until I can shop around.

I really think these kind of deals are as low as the economy can go (without going into deflation!).

Banks have to have their cut must be so small now. Not that I care about how much money banks make, but I don't think rates can fall interest further. The only way is up as Yazz said - but the question is WHEN...

So with my crystal ball, I think a couple of years of low interest rates followed by a rise (small or modest) is on the cards.

Our membership of the EU and their orthodoxy in economic policy kept economies pretty much in the doldrums (low to modest growth but safe interest rates).

Now we've left, Boris will turn his attention to those elusive Brexit trade deals - I am guessing that will be inflationary. But Austerity 2.0 for the next decade or more is here which will be deflationary.

It's a bad time to make a mortgage prediction.
Don’t fix for 5 years the rates will go negative soon
Not bad but not brilliant when the booking fee and terrible ERC is considered. Will wait for better deals which are inevitable once 2nd quarter negative growths figures come out. Things may go negative.
matedodgy13/05/2020 14:38

My 5 year fix ends on 1st June 2020 - just 2 more weeks to go until I can …My 5 year fix ends on 1st June 2020 - just 2 more weeks to go until I can shop around.I really think these kind of deals are as low as the economy can go (without going into deflation!).Banks have to have their cut must be so small now. Not that I care about how much money banks make, but I don't think rates can fall interest further. The only way is up as Yazz said - but the question is WHEN...So with my crystal ball, I think a couple of years of low interest rates followed by a rise (small or modest) is on the cards.Our membership of the EU and their orthodoxy in economic policy kept economies pretty much in the doldrums (low to modest growth but safe interest rates).Now we've left, Boris will turn his attention to those elusive Brexit trade deals - I am guessing that will be inflationary. But Austerity 2.0 for the next decade or more is here which will be deflationary.It's a bad time to make a mortgage prediction.


Why would you wait to shop around? You can to search 3-6 months in advance and get ready to move from 1st June. Otherwise you'll revert to the hideous 3.5-4.5% standard rate. Start looking now!
Remember when we where paying 15% in 1980s
Recession on us inflation follows pay freeze tx increase
We are all doomed Ravi spent all the cash in a few months so much for conservative capitalism
matedodgy13/05/2020 14:38

My 5 year fix ends on 1st June 2020 - just 2 more weeks to go until I can …My 5 year fix ends on 1st June 2020 - just 2 more weeks to go until I can shop around.I really think these kind of deals are as low as the economy can go (without going into deflation!).Banks have to have their cut must be so small now. Not that I care about how much money banks make, but I don't think rates can fall interest further. The only way is up as Yazz said - but the question is WHEN...So with my crystal ball, I think a couple of years of low interest rates followed by a rise (small or modest) is on the cards.Our membership of the EU and their orthodoxy in economic policy kept economies pretty much in the doldrums (low to modest growth but safe interest rates).Now we've left, Boris will turn his attention to those elusive Brexit trade deals - I am guessing that will be inflationary. But Austerity 2.0 for the next decade or more is here which will be deflationary.It's a bad time to make a mortgage prediction.


If it genuinely ends next month you've left it a little late. I spoke to my lender about moving and my fix doesn't end until November. They were happy to waive my early repayment and suggested I apply in July.
Th3.Ripper14/05/2020 00:22

If it genuinely ends next month you've left it a little late. I spoke to …If it genuinely ends next month you've left it a little late. I spoke to my lender about moving and my fix doesn't end until November. They were happy to waive my early repayment and suggested I apply in July.


Who b that ? Lender
Tsb
Is it easy to change a mortgage? I've never changed mine. Been natwest for 5 years at 2.5%. What is the process to change assuming I can. Thanks
BreakingBank14/05/2020 07:44

Is it easy to change a mortgage? I've never changed mine. Been natwest …Is it easy to change a mortgage? I've never changed mine. Been natwest for 5 years at 2.5%. What is the process to change assuming I can. Thanks


It's so bloody easy. Have a look at some mortgage calculators and have a play around with the term, because jumping into a lower interest rate will probably mean (and most people should do this if they are financially able) to stick with similar monthly repayments and lower the term slightly, ie from 20 to 19 years,.... Or do what I did and pop the monthly payments up to the top of what you can manage and smash out as much repayment as you can over the 5 year term. I reduced my term by 5 years when I jumped onto the nationwide 1.39 5 year fix the other day. Started off with a 30 year mortgage in 2011, and down to 17 years now through smart remortgaging, so it's deffo worth it. If you move lenders, you will probably go through a valuation and means test, similar to when you first applied, however if you stick with same lender, all you need to do is do it online. You should probably call the branch or speak to a fee free independent mortgage advisor if you need that extra bit of reassurance.
Th3.Ripper14/05/2020 00:22

If it genuinely ends next month you've left it a little late. I spoke to …If it genuinely ends next month you've left it a little late. I spoke to my lender about moving and my fix doesn't end until November. They were happy to waive my early repayment and suggested I apply in July.


Couldn't agree more. I changed mortgage 2 days ago when my deal was up in September. Nationwide allow 5 months before end of deal to be able to move, and what's better, I was able to start the new mortgage in July and avoid any ERC's. In my opinion, you should always be mortgage shopping roughly 6 months prior to your deal end. So jump on something as soon as you can!
FTOdude17014/05/2020 07:54

It's so bloody easy. Have a look at some mortgage calculators and have a …It's so bloody easy. Have a look at some mortgage calculators and have a play around with the term, because jumping into a lower interest rate will probably mean (and most people should do this if they are financially able) to stick with similar monthly repayments and lower the term slightly, ie from 20 to 19 years,.... Or do what I did and pop the monthly payments up to the top of what you can manage and smash out as much repayment as you can over the 5 year term. I reduced my term by 5 years when I jumped onto the nationwide 1.39 5 year fix the other day. Started off with a 30 year mortgage in 2011, and down to 17 years now through smart remortgaging, so it's deffo worth it. If you move lenders, you will probably go through a valuation and means test, similar to when you first applied, however if you stick with same lender, all you need to do is do it online. You should probably call the branch or speak to a fee free independent mortgage advisor if you need that extra bit of reassurance.


Thank you. I will call them.
Thanks for this - I'll look into this one.

One thing I couldn't find out (might just be me) but how long does the ERC last? Can I make regular over payments? If I take out a mortgage for 10 years does the ERC apply just during the fixed 5 year part?

Is this the best deal around at the moment?

I currently have a mortgage for £60k, value of house is around £215k. Although I'm currently on a flexible mortgage so I don't have much else in the way of savings, so ideally I'd need to aim for a mortgage of £75k ish. (want a bit of a reserve for some building work I have coming up)

My current bank offered me a deal of 1.89% with a £995 fee - which is better than I'm on now.

My current plan shows approx 13 years left to pay, but I'm over paying - I'd like something that allows a degree of flexibility. Ideally I'd like to have a minimum amount to pay like £500 a month, but with the option to pay extra each month and I'd aim to pay £1000 per month.
Edited by: "nbuuifx" 14th May
Are mortgages back to normal now that EAs are back open? I know a lot were pulled unless you had high deposits
nbuuifx14/05/2020 08:16

Thanks for this - I'll look into this one.One thing I couldn't find out …Thanks for this - I'll look into this one.One thing I couldn't find out (might just be me) but how long does the ERC last? Can I make regular over payments? If I take out a mortgage for 10 years does the ERC apply just during the fixed 5 year part?Is this the best deal around at the moment?I currently have a mortgage for £60k, value of house is around £215k. Although I'm currently on a flexible mortgage so I don't have much else in the way of savings, so ideally I'd need to aim for a mortgage of £75k ish. (want a bit of a reserve for some building work I have coming up)My current bank offered me a deal of 1.89% with a £995 fee - which is better than I'm on now.My current plan shows approx 13 years left to pay, but I'm over paying - I'd like something that allows a degree of flexibility. Ideally I'd like to have a minimum amount to pay like £500 a month, but with the option to pay extra each month and I'd aim to pay £1000 per month.


The ERC ought to only apply for the fixed rate period regardless of how long the actual mortgage is and you can usually make overpayments of about 10% of the outstanding balance in any year without triggering the ERC
Shimmasok14/05/2020 08:25

The ERC ought to only apply for the fixed rate period regardless of how …The ERC ought to only apply for the fixed rate period regardless of how long the actual mortgage is and you can usually make overpayments of about 10% of the outstanding balance in any year without triggering the ERC


Thanks, I might need to take a bit of a gamble and set the payments at something like £700 per month and setup a savings account to put any extra in. I need a current account too as my current mortgage is my current account as well!
Sunny_R13/05/2020 12:56

That was the best available to me . I’m relatively new to this mortgage m …That was the best available to me . I’m relatively new to this mortgage malarkey and 5 yrs ago I had as first time buyer taken mortgage with nationwide of £240k at 4.59% but we had very bad experience with them so was determined to move at any cost so moved to first direct for around 3.49% three yrs ago on 5 yrs fix paying around £8k ECR. So now feeling bit stuck 😁 as don’t what to pay another ECR .


I wouldn't feel too disheartened.

I moved from a 1.59 fixed to a 3 year fixed 1.89 just before this kicked off.

Your 3.49 is better than alot of people can get. Some people are struggling to get mortgages.

Whilst some people will reap the rewards of this I doubt it's a mass majority. You've got to bare in mind that usually they'll do a market valuation which will probably drop people's LTVs at the moment and this will open to a small proportion of people.

Perspective is a wonderful thing. Just be thankful you're in a position to pay your mortgage as quote a few people aren't.
Edited by: "jameswalker457" 14th May
Gutted!! I’m locked in with virgin for another 18 months!!
If you have considerable savings but don't want to lock them up in mortgage you can always get an offset mortgage and then just pop every penny you have into the offset account which will negate any mortgage interest on that amount so you will have lower repayments, actually get something for your savings and your money will still be there if you need it in the future.

I'm on a 5 year mortgage until next year, but plan to make another 10% overpayment to help a bit ready to move next year once it expires... crazy rates lol...
Check tsb also they gave me a great rate yesterday and seem to keep popping up on comparison sites
Mars10413/05/2020 13:30

https://www.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgageWe probably won't see negative rates on our mortgages. However it would encourage even more lending and lower rates on mortgages. Might inflate house prices further. If you can't grow the economy with productivity grow it with debt ;-)


Could an apocryphal story but after the Financial Crisis when BOE rate plunged, a mate of a mate claimed to be receiving monthly payments for his mortgage, due to his rate being linked to BOE rate and slightly lower than it.
jameswalker45714/05/2020 08:37

I wouldn't feel too disheartened.I moved from a 1.59 fixed to a 3 year …I wouldn't feel too disheartened.I moved from a 1.59 fixed to a 3 year fixed 1.89 just before this kicked off. Your 3.49 is better than alot of people can get. Some people are struggling to get mortgages.Whilst some people will reap the rewards of this I doubt it's a mass majority. You've got to bare in mind that usually they'll do a market valuation which will probably drop people's LTVs at the moment and this will open to a small proportion of people.Perspective is a wonderful thing. Just be thankful you're in a position to pay your mortgage as quote a few people aren't.


Yes that’s true, 5 years ago I was just happy to get a mortgage at any rate before that I was paying rent so having a house with mortgage was just a dream . I had worked 7 yrs straight in two jobs 7 days a week just to be able to get enough saving for deposit .
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