Unfortunately, this deal is no longer valid
Santander 5 year fixed rate 1.65% (75% LTV) 2 year fixed rates from 1.28% (60% LTV) with £999 fee
1519° Expired

Santander 5 year fixed rate 1.65% (75% LTV) 2 year fixed rates from 1.28% (60% LTV) with £999 fee

134
Posted 19th Aug

This deal is expired. Here are some options that might interest you:

Tomorrow Santander launch market leading rates for purchases and remortgages. Stand outs are the 2 year fix 1.28% £999 fee with £250 cash back. The 5 year fix at 1.65% £999 fee also looks to be market leading. This is an online exclusive.

Remember to factor in capital erosion as well as total cost over the period when choosing a fee product over a fee free product. Happy to help anyone with links to work this out for you. A lower rate will erode capital faster.


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Pay £999 to borrow some money,then pay interest on the money AND interest on the £999 you’ve paid to borrow the money.....
Welcome to the world of crazy mortgage deals 🤪
Edited by: "chridt" 19th Aug
joshp191119/08/2019 10:58

Got my first re mortgage later this year. Am I right in thinking the best …Got my first re mortgage later this year. Am I right in thinking the best way to work out the value of a deal with fees compared to one without is the monthly cost + the fee divided by the fixed term?


Also factor in capital erosion. If you have a £200,000 mortgage over 25 years. Another guy on here got a no fee deal at 1.94% so I’ll use that for comparison. The total cost of the 1.69% with a fee added is £821.94 per month so £49,316. The 1.94% no fee £841.88 so £50,512. The balance left on the 1.69% deal will be £167,287 after the 5 years if you added fee to loan. The balance on the 1.94% deal would be £167,356. You would save £69 on remortgage balance and £1,197 on the monthly payments. Overall £1,266 better off. Even with £999 added to the loan, the lower rate has eroded more of the capital.
Edited by: "donny1266" 19th Aug
People saying the fees are high either haven't remortgaged in a long time or have very low mortgages! Typically the high fee low percentage deals will benefit those borrowing £200k+ (i.e. most millennials!)
MrAlbert19/08/2019 09:56

That's a whopper of a fee!Any good sites for calculating at what point …That's a whopper of a fee!Any good sites for calculating at what point (loan amount/existing rate) it becomes better off.


A £999 fee for lower rates has been the standard for a very long time. When advising on mortgages I take into account the term of the mortgage and the loan amount. This rate and fee wouldnt really be beneficial if you have a mortgage of £100k or less. For those I would stick to a slightly higher rate and have no fee. Works out cheaper in the long run.
134 Comments
That's a whopper of a fee!

Any good sites for calculating at what point (loan amount/existing rate) it becomes better off.
Edited by: "MrAlbert" 19th Aug
I got excited but then with the £999 fee, by my rough calculations my 1.94% offer from HSBC with no fee would save me about £600 in interest but cost me £999 fee - that’s without doing any proper sums. So me for me not s market leading rate once fee factored in over 5 years.
MrAlbert19/08/2019 09:56

That's a whopper of a fee!Any good sites for calculating at what point …That's a whopper of a fee!Any good sites for calculating at what point (loan amount/existing rate) it becomes better off.


It also depends on the term, but the best no fee 5 year fix I can see is 2.01%. The break even point is probably around £80,000, but if a long term its also preferential at £75,000.
neilm2219/08/2019 09:58

I got excited but then with the £999 fee, by my rough calculations my …I got excited but then with the £999 fee, by my rough calculations my 1.94% offer from HSBC with no fee would save me about £600 in interest but cost me £999 fee - that’s without doing any proper sums. So me for me not s market leading rate once fee factored in over 5 years.


What’s your mortgage balance and term? You might be surprised by the end point.
Edited by: "donny1266" 19th Aug
Pay £999 to borrow some money,then pay interest on the money AND interest on the £999 you’ve paid to borrow the money.....
Welcome to the world of crazy mortgage deals 🤪
Edited by: "chridt" 19th Aug
MrAlbert19/08/2019 09:56

That's a whopper of a fee!Any good sites for calculating at what point …That's a whopper of a fee!Any good sites for calculating at what point (loan amount/existing rate) it becomes better off.


A £999 fee for lower rates has been the standard for a very long time. When advising on mortgages I take into account the term of the mortgage and the loan amount. This rate and fee wouldnt really be beneficial if you have a mortgage of £100k or less. For those I would stick to a slightly higher rate and have no fee. Works out cheaper in the long run.
chridt19/08/2019 10:11

Pay £999 to borrow some money,then pay interest on the money AND interest …Pay £999 to borrow some money,then pay interest on the money AND interest on the £999 you’ve paid to borrow the money.....Welcome to the world of crazy mortgage deals 🤪


Well you can pay the fee upfront.
donny126619/08/2019 10:09

What’s your mortgage balance and term? You might be surprised by the end p …What’s your mortgage balance and term? You might be surprised by the end point.


It’s a remortgage of £57,000 for 23 y 6 months to tie in with my main. I had a new agreement dropped from 1.99% to 1.94% and I was told it would save me about £2 a month and figures showed that so as I said, this will end up costing me nearly £400 overall
neilm2219/08/2019 10:42

It’s a remortgage of £57,000 for 23 y 6 months to tie in with my main. I ha …It’s a remortgage of £57,000 for 23 y 6 months to tie in with my main. I had a new agreement dropped from 1.99% to 1.94% and I was told it would save me about £2 a month and figures showed that so as I said, this will end up costing me nearly £400 overall


Do you have two parts to your mortgage?
donny126619/08/2019 10:43

Do you have two parts to your mortgage?


I will have after remortgage, main and the new part timed to finish roughly same time
neilm2219/08/2019 10:48

I will have after remortgage, main and the new part timed to finish …I will have after remortgage, main and the new part timed to finish roughly same time


Fair. You can’t have two different lenders on same property so wouldn’t have suited.
those fees are ridicules
Santander are certainly a market leader for low returns for savers.
DryUrEyesMate19/08/2019 10:49

those fees are ridicules


They make sense if you’re borrowing more than £100k. The saving on the monthly cost outweighs the fee. Also capital erosion leaves you with a lower balance once 5 years are up if borrowing enough.
donny126619/08/2019 10:51

They make sense if you’re borrowing more than £100k. The saving on the mo …They make sense if you’re borrowing more than £100k. The saving on the monthly cost outweighs the fee. Also capital erosion leaves you with a lower balance once 5 years are up if borrowing enough.

lenders often use high fees to make their interest rates look more attractive, so they rise up the best buy table its all marketing just shop around to get better deals.
Got my first re mortgage later this year. Am I right in thinking the best way to work out the value of a deal with fees compared to one without is the monthly cost + the fee divided by the fixed term?
joshp191119/08/2019 10:58

Got my first re mortgage later this year. Am I right in thinking the best …Got my first re mortgage later this year. Am I right in thinking the best way to work out the value of a deal with fees compared to one without is the monthly cost + the fee divided by the fixed term?


Also factor in capital erosion. If you have a £200,000 mortgage over 25 years. Another guy on here got a no fee deal at 1.94% so I’ll use that for comparison. The total cost of the 1.69% with a fee added is £821.94 per month so £49,316. The 1.94% no fee £841.88 so £50,512. The balance left on the 1.69% deal will be £167,287 after the 5 years if you added fee to loan. The balance on the 1.94% deal would be £167,356. You would save £69 on remortgage balance and £1,197 on the monthly payments. Overall £1,266 better off. Even with £999 added to the loan, the lower rate has eroded more of the capital.
Edited by: "donny1266" 19th Aug
People saying the fees are high either haven't remortgaged in a long time or have very low mortgages! Typically the high fee low percentage deals will benefit those borrowing £200k+ (i.e. most millennials!)
Thanks for this OP.

I'm looking to remortgage at the moment, was surprised how crap Halifax's interest rates are. Was hoping to avoid switching provider but at 2.69% for a 3yr fixed deal I may have to. Will certainly keep this one on the radar.
My 5 year fix on 100,000 at 3.5% is nearly up, and I have decided to take a 2 year 1.74 no fee from HSBC. That has lowest overall cost for two years. Mortgage advisors would no doubt suggest locking in a higher rate for a longer period to guard against rate rises, but my current thinking is that it is better to take advantage of low rates while they last. And if they do rise, I will probably still be better off remortgaging in two years than I will in (e.g.) five years. Santander also has a no fee two year mortgage available at a similar interest rate, but it has a big ‘exit fee’. Watch out for those.
Just last week renewed online for 2 yr with Santander for 1.35% with 999 fee
RandyLanzarote19/08/2019 11:25

Thanks for this OP.I'm looking to remortgage at the moment, was surprised …Thanks for this OP.I'm looking to remortgage at the moment, was surprised how crap Halifax's interest rates are. Was hoping to avoid switching provider but at 2.69% for a 3yr fixed deal I may have to. Will certainly keep this one on the radar.


Halifax don’t offer new customer rates to existing customers. Shit business model so definitely change!
cb361119/08/2019 11:21

My 5 year fix on 100,000 at 3.5% is nearly up, and I have decided to take …My 5 year fix on 100,000 at 3.5% is nearly up, and I have decided to take a 2 year 1.74 no fee from HSBC. That has lowest overall cost for two years. Mortgage advisors would no doubt suggest locking in a higher rate for a longer period to guard against rate rises, but my current thinking is that it is better to take advantage of low rates while they last. And if they do rise, I will probably still be better off remortgaging in two years than I will in (e.g.) five years. Santander also has a no fee two year mortgage available at a similar interest rate, but it has a big ‘exit fee’. Watch out for those.


For that size mortgage it’s not bad. HSBC dropped rates on Thursday so give them a call. That 1.74% was lowered to 1.64% from what I can see.
donny126619/08/2019 11:54

For that size mortgage it’s not bad. HSBC dropped rates on Thursday so g …For that size mortgage it’s not bad. HSBC dropped rates on Thursday so give them a call. That 1.74% was lowered to 1.64% from what I can see.


I will definitely check that out.
cb361119/08/2019 12:01

I will definitely check that out.


Are you below 60% LTV?
donny126619/08/2019 12:03

Are you below 60% LTV?


Yes. And a few months before I can switch anyway. I found the mortgage you mention, and I’ll definitely check it out.
cb361119/08/2019 12:10

Yes. And a few months before I can switch anyway. I found the mortgage …Yes. And a few months before I can switch anyway. I found the mortgage you mention, and I’ll definitely check it out.


They may ask you to fill out an application amendment form. It only takes a minute and they will reoffer on the new product in a couple of days. Every penny counts
donny126619/08/2019 11:30

Halifax don’t offer new customer rates to existing customers. Shit b …Halifax don’t offer new customer rates to existing customers. Shit business model so definitely change!


I just looked up their new customer rates.... Wow.

Oh well, let's hope the switching process isn't too difficult.
I’ve got 85000 left and Yorkshire bank offering 2.94% 5yr no fee. @donny you were saying it wouldn’t be worth it for someone with that capital left. I use the money saving expert compare two mortgages calc. Just interesting why you take this view
Leesays19/08/2019 12:25

I’ve got 85000 left and Yorkshire bank offering 2.94% 5yr no fee. @donny y …I’ve got 85000 left and Yorkshire bank offering 2.94% 5yr no fee. @donny you were saying it wouldn’t be worth it for someone with that capital left. I use the money saving expert compare two mortgages calc. Just interesting why you take this view


What term? What is your home worth?
Edited by: "donny1266" 19th Aug
I'm looking to re-mortgage around £200k for a 2 year fixed term. I was set on the no fee Post Office mortgage at 1.63%, but this works out around £50 better after 2 years according to my quick sums. Heat
donny126619/08/2019 12:29

What term? What is your home worth?


20 yrs left and £122000 mate
Leesays19/08/2019 12:34

20 yrs left and £122000 mate


The 2.94% 5 years is quite high. It would be better to take this deal.

A better deal for you might be HSBC 1.94% with no fee at all.
I think if you can hold out rates will go lower in the coming weeks due to the 'B' word. Be prepared to move fast in such an environment.
Scorpion19/08/2019 14:00

I think if you can hold out rates will go lower in the coming weeks due to …I think if you can hold out rates will go lower in the coming weeks due to the 'B' word. Be prepared to move fast in such an environment.


Fully agree. Think we will see a 0.99% 2 year fix eventually and expect base rate to go back .25
donny126619/08/2019 14:01

Fully agree. Think we will see a 0.99% 2 year fix eventually and expect …Fully agree. Think we will see a 0.99% 2 year fix eventually and expect base rate to go back .25


Yep I think the last couple of years the MPC have been trying to edge the rate back up so they've some wiggle room once the UK leaves the EU.
How long roughly does it take to remortgage once signed up then? My current expires September 15th. i'll try hold out as long as possible but dont want to risk moving on to their variable rate
Does the 5 year also feature cashback?

Dont forget if you've got a Santander 123 account you can get 1% cashback on your mortgage payments up to £1000pm
donny126619/08/2019 10:09

What’s your mortgage balance and term? You might be surprised by the end p …What’s your mortgage balance and term? You might be surprised by the end point.


I have mine up for renewal and wondering if this deal is best for me, I have repayment mortgage of £106300 and now borrowing extra of £36,000 on top of it (for 19 years) which product would be good for me(5 years fixed) with(this one) or without fees
Please suggest as its a question of next 5 years :-)
ssh19/08/2019 14:29

I have mine up for renewal and wondering if this deal is best for me, I …I have mine up for renewal and wondering if this deal is best for me, I have repayment mortgage of £106300 and now borrowing extra of £36,000 on top of it (for 19 years) which product would be good for me(5 years fixed) with(this one) or without feesPlease suggest as its a question of next 5 years :-)


LTV below 60%
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