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Updated: Britannia Building Society Offering 90% LTV @ 4.74% No Fees
Updated: Britannia Building Society Offering 90% LTV @ 4.74% No Fees

Updated: Britannia Building Society Offering 90% LTV @ 4.74% No Fees

Updated (previously 4.99%)

Britannia Building Society Offering 90% LTV @ 4.74% on SVR

No Set Up Fees

Looks like the best rate out there for first time buyers

And if interest rates fall by a further 1 to 1.5% as predicted even better

41 Comments

That is a great rate

HOT

Hmmm, good deal. And if no tie in and only sub £400 fees to move then it would be a good way to get on the property ladder and move to a different lender when some better tracker/Fixed Rate deals come along.

"And if interest rates fall by a further 1 to 1.5% as predicted even better" - LOL
The greedy banks haven't passed on the other Bank of England interest rate cuts to mortgages like this, why do you think they will pass on any others?

Original Poster

scoobie;3810362

"And if interest rates fall by a further 1 to 1.5% as predicted even … "And if interest rates fall by a further 1 to 1.5% as predicted even better" - LOLThe greedy banks haven't passed on the other Bank of England interest rate cuts to mortgages like this, why do you think they will pass on any others?



possibly they won't scooby

but if they drop rates by another 1.5% as predicted i believe they will be forced to at least drop by 0.5%

as aerotec says this is a great deal to get on the ladder and then move deals at a later date:thumbsup:

amazing deal - looks like banks might be starting to lend again.

What does this bit mean?

Higher lending charge (HLC)

If your loan is over 75% of the current value of the property, a higher lending charge will apply, however the society will cover the cost of this for you.

Whilst I appreciate that this is may be one of the best deals at the moment, but considering the BoE rate is well below this, can it really reflect the requirement to purchase a property when we are on a downward spiral at the moment and be classed as a hotukdeal - whilst I understand everyone is under different circumstances, surely not for looking for a property for another 16 months or so would be hotter???

voted hot but yeah, it is not the time to buy a property

Not 100% relevant to this post but I would like to point out to people who whinge that the banks don't pass on the full rate cut...

The banks don't borrow money themselves at the "Bank of England Rate" they use a rate called LIBOR... which is currently (and normally is) higher than the BOE rate.

The banks are in trouble from previously "over borrowing" so why are they likely to pass on the full rate cut... they need to make some money back.

AND... for those that complain that Northern Rock don't pass on the full cut being "State Owned" they can't really pass on the full cut as they can't be seen to have a competitive advantage being state owned... therefore they need to remain "uncomeptitive"... part of the takeover said that they can only secure a certain percentage of UK mortgage business.

Glad I have got that off my chest even if it just stops one more person complaining about this damn "credit crunch."

Best way to solve it? Shut the media up - they make it worse.

Rant over.

cheesey;3814492

Not 100% relevant to this post but I would like to point out to people … Not 100% relevant to this post but I would like to point out to people who whinge that the banks don't pass on the full rate cut...The banks don't borrow money themselves at the "Bank of England Rate" they use a rate called LIBOR... which is currently (and normally is) higher than the BOE rate.The banks are in trouble from previously "over borrowing" so why are they likely to pass on the full rate cut... they need to make some money back.AND... for those that complain that Northern Rock don't pass on the full cut being "State Owned" they can't really pass on the full cut as they can't be seen to have a competitive advantage being state owned... therefore they need to remain "uncomeptitive"... part of the takeover said that they can only secure a certain percentage of UK mortgage business.Glad I have got that off my chest even if it just stops one more person complaining about this damn "credit crunch."Best way to solve it? Shut the media up - they make it worse.Rant over.



Quite right, which just explains why further rate cuts will not have any effect on whose who pay their mortgages on time......and the numbers are reducing.......:whistling:

Being pedantic but Britannia isn't a bank. They also offer a Members' Loyalty Bonus, which pays back a cash sum once a year (a bit like paying a dividend, or Quidco if you prefer ;-) ). My last three bonuses have totalled almost £500 :-D

Just to give you all clarification re the Britannia Building Society's SVR, it has no arrangement or admin fees but does have a valuation and legal fees that need to be paid. Which may not seem attractive if you are remortgaging, however, once you have completed you are then eligible for any of the society's retention products, which means the fixed rates are lower than the core range advertised.
Because Britannia is a mutual, after 2 years you also get a share of the society's profits, and seeing as they made over £40 million at half year this year, this is something to look forward to.
A mutual is there for it's members, not shareholders, and if the law changes and the Britannia gets the opportunity to product share or merge with the Co-op then I for one would be glad to be a member of Britannia.
Also fyi bank of england base rate reductions do not necessarily reduce the libor rates that influence bank/building society mortgage rates, Britannia was the 1st building society to pass on reductions in it's svr in 2 out of the last 3 reductions.
Stevenage Borough FC - in answer to your question the HLC is an indemnity taken by lenders to protect themselves in the event of a property being reposessed and a loss being made when the property is sold on. It applies to lending when you borrow more than 75% of the value of your home. Britannia do not charge you this fee, they cover it for you, only implication is if they made a loss in the sale of the property following reposession then the insurance company can pursue you for any shortfall. Standard practice across lenders but not all pay it for you, however, Britannia do!

HertzVanRental;3814557

Quite right, which just explains why further rate cuts will not have any … Quite right, which just explains why further rate cuts will not have any effect on whose who pay their mortgages on time......and the numbers are reducing.......:whistling:



It won't you're right... but I don't disagree with the interest rate cuts... the intentions are right. And I don't want to get "political" about it but I do believe what this government is doing is the right thing.

The media REALLY is the major issue - if you tell enough people enough of the time there is a crisis they will believe it. And understandably so.

But regarding this deal :whistling: this is a good deal...although I would hold fire until January personally.

cheesey;3814762

The media REALLY is the major issue - if you tell enough people enough of … The media REALLY is the major issue - if you tell enough people enough of the time there is a crisis they will believe it. And understandably so.But regarding this deal :whistling: this is a good deal...although I would hold fire until January personally.


I remember a few months ago people were saying don't mention the 'R' word, as if even saying the word recession would create panic and take us into one. I think the period since has shown us that we are all at the mercy of the wider world economy, and to think we were ever going to talk ourselves into/out of recession is naive. The UK economy won't pick up until the US does; and that's no time soon.
All the economic indicators and forcasts from people like Rightmove and Bloomberg forcast that house prices will continue to fall by 10-15% in 2009. Common sense says this is going to happen as we go deeper into the recession, what with the inevitable rise in unemployment to follow next year and ever decreasing confidence.
I'm a first time buyer myself, and i would urge anyone else to concentrate on saving for a bigger deposit at the moment. The only January i would wait for is 2010.

Banned

HertzVanRental;3814557

Quite right, which just explains why further rate cuts will not have any … Quite right, which just explains why further rate cuts will not have any effect on whose who pay their mortgages on time......and the numbers are reducing.......:whistling:



Rate cuts effect me. I'm on a Natwest tracker that I switched to about September last year and im paying base rate + .69%

Although it did have a 1000 pound product fee that made me choke at the time, it has already paid for itself....

I have a lifetime Tracker with the Britannia, which tracks at 0.4% above the BoE base rate and has no floor.

They are quick to pass on any rate change without fanfare or fuss.

This the 2nd mortgage I've had with them and I am very happy with their service.

I would definitely recommend them.

Also, the more financial products you have with them, the more member bonus's you qualify for

The housing market bubble has burst. Most economist without personal interests in the market are predicting 30-50% falls over the next 5 years.
Making the biggest, and most expensive financial decision of your life in a market like this is absolute madness.
The government is forcing the banks to bring back products like this which is disgraceful, considering it was the formentioned products that caused all the mess we are in now.

Interest rates are going to be low to a few years at most, then get ready for massive inflation, and interest rates to match (1990's rates were close to 15%), due to the billions being put into the economy, and other anti-deflationary methods of reinflating the bubble (ie printing money).

Tread very carefully.

scoobie;3810362

"And if interest rates fall by a further 1 to 1.5% as predicted even … "And if interest rates fall by a further 1 to 1.5% as predicted even better" - LOLThe greedy banks haven't passed on the other Bank of England interest rate cuts to mortgages like this, why do you think they will pass on any others?



Some of the banks have passed on the rate cuts. The table here in BBC's page shows which banks have passed on what cuts from the last two reductions

news.bbc.co.uk/1/h…stm

TejS;3815855

The housing market bubble has burst. Most economist without personal … The housing market bubble has burst. Most economist without personal interests in the market are predicting 30-50% falls over the next 5 years.Making the biggest, and most expensive financial decision of your life in a market like this is absolute madness.The government is forcing the banks to bring back products like this which is disgraceful, considering it was the formentioned products that caused all the mess we are in now.Interest rates are going to be low to a few years at most, then get ready for massive inflation, and interest rates to match (1990's rates were close to 15%), due to the billions being put into the economy, and other anti-deflationary methods of reinflating the bubble (ie printing money).Tread very carefully.



What a load of twaddle !

yes house prices will fall but by upto a further 50%? There is still a shortage of housing overall, hence there is still excess demand, and so prices will stabilise at some point (within the next 12-18 months is my guess)

Interest rates I beleive "peaked" at close to 15% for one day following black wednesday, base rate during the 90's was probably close to 5-7% for the most part.

At the moment the main reason the banks are not passing on cuts, is that they are being forced to rebuild their capital, and so do not wish to entice business/lend, it is anticipated that they will have rebuilt their capital, and be looking to start lending albeit more cautiously early in qtr 2 next year, if so, that could help the housing market stabilise.

Anyone looking at mortgage rates now should be cautious, as yes tracker rates look good in a falling market, but the lenders margins of 2+% is massive, once base rate gets back to 4-5%, a margin of 2% on top will be very high, so be careful about long tie in periods, long term fixed rates are starting to look attractive (if you look long term, and ignore the current short term "blip")

I'm currently paying 2.4% with Britannia on a lifetime tracker which will go down to 0.4% if ever the base rate gets down to 0% as has been suggested! Am getting far more on my savings, so it's cheaper to have a mortgage with them than pay it off at the moment!

apk1;3816177

Interest rates I beleive "peaked" at close to 15% for one day following … Interest rates I beleive "peaked" at close to 15% for one day following black wednesday, base rate during the 90's was probably close to 5-7% for the most part.



I believe they peaked at that rate for exactly a year if my memory serves me correctly?

moneyextra.com/dic…php

15% for one year, over 10% for several years. Cheaper rates towards the mid/end of the 90's but the beginning were very high.

apk1;3816177

What a load of twaddle !yes house prices will fall but by upto a further … What a load of twaddle !yes house prices will fall but by upto a further 50%? There is still a shortage of housing overall, hence there is still excess demand, and so prices will stabilise at some point (within the next 12-18 months is my guess)



If there is excess demand, how come EAs are closing down everywhere and numerous (admittedly flats) properties remain empty? The housing market is not only influenced by interest rates, but perhaps more importantly the economic downturn and significant redundancies/bloodbath that is expected in the forthcoming year. Useful site for reviewing the deteriorating economic issues and impact on house prices/predictions: [url]www.housepricecrash.co.uk[/url]

Yeap, I fear, with good justification, that this could well be the greatest crisis capitalism has had to face. Add in social and environmental crises and we are all in for very interesting times which could result in war or pestilence or probably both. Buy a house? Why not. There will probably be no one around to collect the mortgage! Then again there will be some really nice empty houses. Interesting times.

If you are two of you applying and you both have been through higher education, you can get an additional 0.2% discount from this through Share to Buy brokers.

aerotec;3810270

it would be a good way to get on the property ladder



Don't you mean the Property Snake?

I'm hoping to buy perhaps in a year or 18 months, but I wouldn't touch the housing market with a bargepole in 2009

On top of this when you are a member you get rewards every year depending on the products you have with them - mortgages count a lot, a coupe of hundered quid back every year is nice. But you do need to make sure you are signed up for the rewards - you have to opt into them which is dumb..

Mikiex;3817325

But you do need to make sure you are signed up for the rewards - you have … But you do need to make sure you are signed up for the rewards - you have to opt into them which is dumb..



Are you sure?

I think you automatically became a member when you open an account (or take out a mortgage) and the payments start after a couple of years.

Its a good rate compared to others - BUT is massively over the base rate - so it just means they are the best price from a group of businesses who are screwing us.

cheesey;3814492

Not 100% relevant to this post but I would like to point out to people … Not 100% relevant to this post but I would like to point out to people who whinge that the banks don't pass on the full rate cut...The banks don't borrow money themselves at the "Bank of England Rate" they use a rate called LIBOR... which is currently (and normally is) higher than the BOE rate.The banks are in trouble from previously "over borrowing" so why are they likely to pass on the full rate cut... they need to make some money back.AND... for those that complain that Northern Rock don't pass on the full cut being "State Owned" they can't really pass on the full cut as they can't be seen to have a competitive advantage being state owned... therefore they need to remain "uncomeptitive"... part of the takeover said that they can only secure a certain percentage of UK mortgage business.Glad I have got that off my chest even if it just stops one more person complaining about this damn "credit crunch."Best way to solve it? Shut the media up - they make it worse.Rant over.



old hat

Is 4.99% good rate for today's market? My current one is a discount at the "Banks" variable rate and it's 2.89%

Original Poster

poopscoop;3821528

Is 4.99% good rate for today's market? My current one is a discount at … Is 4.99% good rate for today's market? My current one is a discount at the "Banks" variable rate and it's 2.89%



for first time buyers with only a 10% deposit this is the best rate at the mo :thumbsup:

It also goes down 0.2% fees free if you are a graduate and go through share to buy.

Its the best deal for first time buyers with 90% LTV

0.25% discound and fee free if you are a member of a union!

and also £150 cashback on completion.

britannia.co.uk/hom…tml

Some of the posters comments make glim reading. World war III etc, wouldn't want to be in the uk if it does happen as i have a feeling that us brits like our US & european cousins would be in a state of utter chaos. Unfortunately we are sheep and couldn't cope with such a disaster. Think it would be wise to keep some cash tucked away somewhere just incase.

I have an offer accepted for a new house,

I can apply for the britannia's 60% ltv fixed rate over 5 years no fees at 4.89%

I have been searching all the major lenders and this is by far the best mortgage deal..

I know they are owned by barcleys,

Does anyone have a mortgage with these guys?

Are they any good 'for want of a better word' ?

DaheavyFo;3887600

I know they are owned by barcleys,



Absolutely not true :-D

Id say people saying its not a good time to buy a house, well when is it? Its a massive purchase and I would have though buying one now is better than having bought one earlier this year or last year and now being in negative equity.

Lets not forget some of us have to live in houses and arent just developing them and trying to make profits. Houses are supposed to be lived in and for the past 30 years (minus minor drops) people just expect their house to be worth more, but why should it be when you think about it, sure it would be nice but what sort of purchase becomes worth more over time? Not many.

So if its a good time or bad time, people saying wait 2 years are clearly investor types, what about first time buyers? Wait 2 years? Its a bit extreme because thats 2 years of your life, you could wait and the rate stays the same, you could end up spending all your deposit, a lot of things could happen, but what if you have a child and need a house? Wait 2 years? Its pretty unrealistic telling people to wait 2 years, you totally generalised it and should realise a house needs to be a home for many people, not just an investment.

Original Poster

spunklemonkey;3930134

Id say people saying its not a good time to buy a house, well when is it? … Id say people saying its not a good time to buy a house, well when is it? Its a massive purchase and I would have though buying one now is better than having bought one earlier this year or last year and now being in negative equity.Lets not forget some of us have to live in houses and arent just developing them and trying to make profits. Houses are supposed to be lived in and for the past 30 years (minus minor drops) people just expect their house to be worth more, but why should it be when you think about it, sure it would be nice but what sort of purchase becomes worth more over time? Not many.So if its a good time or bad time, people saying wait 2 years are clearly investor types, what about first time buyers? Wait 2 years? Its a bit extreme because thats 2 years of your life, you could wait and the rate stays the same, you could end up spending all your deposit, a lot of things could happen, but what if you have a child and need a house? Wait 2 years? Its pretty unrealistic telling people to wait 2 years, you totally generalised it and should realise a house needs to be a home for many people, not just an investment.



there never is a good time to buy a house as it has to be right for you (or right for your missis anyway - as i believe they wear the trousers in house buying)

Original Poster

by the way this is still the cheapest 90% LTV @ the mo

you can get 3.99% with stafford railway

srbs.co.uk/p/r…php

however you would need to have parents or someone acting as guarantors

*** For applications in excess of [COLOR=#ff0000]75%[/COLOR] SRBS is prepared to consider a secured guarantee. A first charge over property or cash, are examples.

Original Poster

update rate is now 4.74%

this still seems to be the cheapest rate for first time buyers

if you want security of a fix i think the cheapest is 5.69% from C&G

(lots of banks seem to have come back with 90% deals today so check out the following website for details)

fsa.gov.uk/tab…ges
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