Mortgage Deals & Offers

Hhahahhahahah come on my friend , i agree renting services minimal value. But what do you think most of this society is based on Recruitment agents Estate agents How about the government departments that sell off UK prime land to foreign buyers who make multi million pound profits. Yet no one asks why the government could not have achieved this ? There are plentiful of jobs and organisation that are not value adding ......

Rentier capitalism is a term used to describe the belief in economic practices of monopolization of access to any kind of property (physical, financial, intellectual, etc.) and gaining significant amounts of profit without contribution to society. A real job is where you create something useful for society. Capturing a property and then getting the tenant to pay your mortgage is not useful.

What do you mean ?

Get a real job and let normal people buy the property

Well also before the changes BTL had more borrowing power. BTL had more purchase power than residential, now the new rules have come in its reduced it massively and reduced the profit too. Which in my opinion is the right thing to do. But ultimately the solution is for 1.government to stop propping up the housing market 2. Stop selling off land then foreign buyer comes along builds 10 x 1m flats , yet for some reason the government wasnt able to do this ? 3. Re balance the economy away from london.

Very good deal thank you

Plus add any exit fees plus compare capital paid off over minimum term.

We're pretty much stuck with Nationwide for our mortgage as HSBC said they were unable to arrange a suitable valuation for our property and the LTV they were willing to offer us was WAY under what we've already got with Nationwide. (HSBC said house is worth 180, Nationwide say 210)... Anyways, after a bit of digging, Nationwide are the exact same price so will be arranging a new mortgage deal with them - I've been hunting for 5 year fixes for the past few days and the only other option that is close in terms of the whole package is First Direct, who work out £200 or so cheaper over the 5 years with their £490 fee, 1.59% mortgage, but the faff of switching to save £200 isn't worth it currently.

House price crash? % of 3million cash rich HK citizens incoming? Demand thru the roof? All I know is whatever we predict will definitively be wrong and the predictions thats are definitely going to be right will be even more wrong.

How soon before your 5 years is up can you remortgage with no penalty? Am with Halifax and will hit 5 years in March. Even the SVR is less than what we're on at moment!

Exactly same situation and I got exactly the same answer. I'll just leave June with no fixed rate and start from July.

This product was released on 29th May. I had a fixed term coming to an end, and am eligible to switch from 01 June. Nationwide advised that the earliest this new rate could start would be 01 July because they wouldn't have enough time to process it for 01 June. Has anyone else encountered this or similar? If so, what was the result? Hot for the product. Less so for the service that goes with it.

im also looking at winning the lottery soon...... ya pays your money ya takes your chances (y)

Iver been in the market for a new mortgage - Initially went enquired with nationwide..what a joke - the 'advisor' was useless and took nearly 30 mins yto get my basic address details input! I gave up in the end. Also agree that those adverts are so bad that I really didnt want to give them 1st shout but rates seemed good. Anyway after that awful 1st customer interactoion experience i went and applied elsewhere, awaiting a decision ( now 8 days at the underwriter!) but they are making me jump through hoops on the application despite having a 65% LTV. Guess this backs up some of the comments in this thread.

Left NW after pulling all their savings products ..... Shame!

It’s Barclays.

Cold rip off considering current BOE rates and market conditions

Mortgage is better at low interest rates XD XD

Exactly. Need to remortgage soon otherwise will pay high interest rate.

Yes, by remortgaging while interest rates are low to secure a cheaper monthly payment.

it has been said already but needs saying again and on nearly every mortgage deal The following in the deal header is wrong for the reasons already highlighted the amount owing at the end of the fix. Different rates pay off different amounts of capital (you can make it the same by fiddling with the payments) 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 (7 x 12 = 84 payments in this case) then adding any product fee minus any cashback.

Totally.

Many lenders let you lookup the broker options on the web. There may be some specialist deals that are only done through the broker network some lenders it will be a few products, for a lot of borrowers there may be no difference Some it is on just about every deal the brokers get a better rate or other incentive.. As a clue brokers are known as intermediaries. if you know roughly what you want/need it does not take long to filter the main lenders for whats out there. and do the like for like comparisons to see which is cheapest and by how much. You can then look at the more critical stuff like, follow on rates, overpayment limits/ERC, retention deal history, LTV boundaries...

1.69% 5 years fixed with no £999 arrangement fee is a better option !

You're bouncing from blaming "boomers" for your plight to the conservative party, then blaming empty housing stock and then the gig economy... you really do need to compose your arguments better. Empty houses dont mean a lack of supply, if you are using London as an example then the vast majority of the empty housing stock you refer to are owned by foreign buyers who for years have been using property as a way of hiding / investing (delete where appropriate depending on how pessimistic you are) funds. there was independent research done a few years ago (apologies for not finding it but cant be bothered to search) they estimated 22% of all privately owned property in central london was owned by foreign buyers or by offshore trusts. Again this has nothing to do with boomers, just wealthy people but in my opinion it is why London property prices are so high, wealthy foreign investors buy, meaning local people are forced to buy the next best and so on meaning prices are high but while there is demand for property this will always be the case, this is happening worldwide though as we all live in a free market. New Zealand, last year I believe, took the approach to ban foreign investors as homes in Auckland were now on average the highest in the world at over £1million so clearly others have it worse than we do. Again going back to my original point, you should stop being so self entitled and blaming people who you feel had it better than you, sure property was cheaper if you were born 30 years ago but there are loads of things that aren't better, chances are if you were born 30 years ago, you'd have been less likely to have a job, if you did and managed to buy a house you would have probably had to give it back when interest rates sky rocketed and no one could afford their homes. Assuming you got through that and you had some spare money and fancied a holiday, you would have had to pay on average the same amount we do to travel to australia just for a flight to Spain, oh and you would live at least 10 years less. All perspective I guess but theres never been a generation as lucky as us so quit being so negative and cheer up, your life will be loads better if you are more positive :D

I had a look through all the banks yesterday and 1.39% over 5 years is the lowest rate I have found, but remember the £999 fee. FD is 1.49% with a £490 fee and HSBCs 1.59% is the lowest I have found without a fee. Happy to be told otherwise because I am about to pull the trigger on the 1.59% deal

is this the best 60% LTV mortgage around so far? Comparing it to the Santander/First Direct ones

I thought about doing the same too. But mortgages are so cheap now (and getting even cheaper!) that I figure it's better to keep paying the mortgage at about 1% interest and invest the money that would have paid off the mortgage into the stock market. Only have to make more than 1% per year and I'm better off. Average returns have been over 10% a year for as long as I can remember.

There's good deals on higher LTV, but the lower the LTV the better the deal, always.

This is going down to 1.14% tmrw and the no fee is going down 1.44%

As with a lot of mortgage deals on here you get loads of the fees not worth it without any calculations... done a wee spreadsheet(just knocked this up so not cross checked the answers yet) for a given rate and fee the break even rates and amounts for a matrix of values of rate difference and mortgage amount for a range of terms based on the monthly payment of the fix rate with fee which is close enough for this exercise. for this 1.19% £999 fee 2 year fixed term (formatting is rubbish can you do tables here?) Mortgage amount break even rate Full term £50,000 £100,000 £150,000 £200,000 £300,000 5 2.449% 1.816% 1.606% 1.502% 1.398% 10 2.315% 1.749% 1.562% 1.469% 1.376% 15 2.276% 1.730% 1.549% 1.459% 1.369% 20 2.258% 1.721% 1.543% 1.455% 1.366% 25 2.247% 1.716% 1.540% 1.452% 1.365% 30 2.240% 1.712% 1.538% 1.450% 1.364% rate difference break even mortgage 0.10% 0.20% 0.30% 0.40% 0.50% 5 £621,402.08 £310,499.14 £206,864.93 £155,047.90 £123,957.75 10 £555,640.58 £277,599.60 £184,919.38 £138,579.35 £110,775.40 15 £536,724.67 £268,135.68 £178,606.13 £133,841.44 £106,982.69 20 £527,756.36 £263,648.61 £175,612.81 £131,594.99 £105,184.37 25 £522,529.74 £261,033.59 £173,868.31 £130,285.76 £104,136.29 30 £519,112.37 £259,323.76 £172,727.67 £129,429.71 £103,451.00 For a nationwide borrower with the no fee fix at 1.69% (+0.5%) the break even is as low as £105k with a term 20 years or longer.

Looks like a good deal for 90% (y) Just be careful not to end up with negative equity

Economy is about to crash and we could be in recession or even depression. I can't see interest rates going up any time soon.

I don’t know much about mortgages but I just purchased my first home, 90% loan, 1.84% interest fixed for 2 years. £999 fee although they are paying me back £500. Can anyone let me know if this was good for a first one buyer? And what I should do end of the 2 years?

Quit while your ahead. All the good stuff is snapped up b4 auctions starts. If your in the trade you will know what I mean. Traders have relationships with others in the trade where houses change hands at competitive prices. Auction is odd ball properties no trader wants

ahh ok , I'm interested in going to auction but i've never bought there before , would you have any recommendations on how to get started ?

Used to. But my regional auctions have become flooded with people suffering from Auction Fever in recent years. As such the ‘bargains’ of old are less frequent. Nowadays I rely on standard listings and make offers where I see value. Typically I get 1 in 10-15 offers accepted.

Yes on ebay

DOes anyone here buy at auction

There are loads of threads on moneysavingexpert mortgage forum dealing with this complication.

I got this rate 6 months ago, shame they haven’t lowered the rates after BOE lowered them

Just don't pay the last penny

Hi guys any help with this. I want to buy my parents house from them and we all live in the same house. Which mortgage lenders allow this . I have only come across HSBC that allow this. Any help will be appreciated. As my parents mortgage for the house are paying 6% interest so that's why I want to buy it from them

Incorrect. Mortgage is fully portable to a new property without penalty.

You would be quicker phoning to describe your circumstances and ask.

Does Firstdirect give help to buy equity mortgage?

As I understand it a bank would never offer a mortgage at a negative interest on an asset that is likely to crash in value, it means they always lose? House prices are too high, but tenancy laws too unfavourable to all rent like many European countries.

https://www.theguardian.com/business/2020/may/20/uk-sells-government-bond-with-negative-yield-for-first-time-coronavirus

Six months.

Santander have a tendency to use online valuations, certainly for remortgages.

I am currently in process of mortgaging with nationwide. They said they are still doing some desktop valuations (online) as they only started visits last week or so. Said mine could be either.

Thanks. I’m with Santander at the moment so as a new customer I imagine I’d need a valuation.

I think you can use zoopla and the like online to get an idea. Lots of online free valuation sites. I renewed with first direct and they used an online valuation

Thank you, I just more meant, how will I know what my house would be valued at? I haven’t a clue.....

As I was anticipating, Nationwide have now lowered their rates, if not too late you should take another look. For my borrowing amount (180k mortgage 25 years remaining) it now looks best for me to go for the 2 year fee free 1.44% (providing interests rate don't shoot up after 2 years). The 5 year rate is now 1.34% + £999 fee.

Denmark has seen negative rates mortgages for an year now. But you are right the government might chose to have some other form of negative rates. For e.g. help to buy is a form of negative rate where consumers are incentivised to buy property. The only difference is negative mortgage rates incentivise the consumer directly without middleman like the construction company. But in UK since most policy makers are also shareholders of house builders they tend to follow policies to their advantage.

Yeah - And there is precisely ZERO chance that lenders will pass that onto retail consumers - BoE will offer -ve (short term) rates to the wholesale market... i.e. Banks

If we weren't looking to move in the next couple of years I'd be going for this.

Agree when I took the fixed 1.99 for 5 years there was no fee now it’s hard to get a no fee mortgage

I know no one has a crystal ball but... I would have thought two years would be lower than this now when five years are around the same with a very small reservation fee.

Because it is for anyone who has 60% LTV or less. Cannot imagine most new buyers having a 40% deposit.

explain?

No wonder you don’t have a mortgage with comments like this (lol)

These are first time mortgage rates too are they not? I meant waiting for house prices to fall before buying a property.

Hopefully this arrangement fees will be refunded the same as PPI at some point. It is insane to pay interest and arrangement fee, what is the service for the arrangement fee?

If you want to compare properly by paying the fee up front you have to take the fee off the mortgage without the fee. if you don't make the payment the same you have to account for the costs/savings of the difference in payment by making an assumption like what the interest rate will be easier to just make the payments the same to get the base result then decide if there are better options like saving or the preference to have a smaller payment and spend it. You can then work out the true cost of not paying down the mortgage once you have the comparison of the no fee/fee for a level of borrowing that is like for like you an then decide if the money in the bank is preferable even though it will cost you once you decide what borrowing you need and the monthly payment It does not matter how you wrap it up the comparison to see which is cheaper is X against X+fee with the same monthly payment Want more money in the bank at the start borrow more. Want a smaller payment make the term longer or just decide how much you need and what payment you want then do the comparison. then work out what term is needed to get the payment you want. Anyone planning to overpay should use the planned payment not the contractual payment

Bit confused. The savings you get from paying the upfront fee ARE the monthly difference so why would you make the payments equal? whag have I missed to give different outcomes? Also I think you’re assuming someone could pay down the 999.99 upfront on the higher rate though if they’re going for the higher interest it might be because they can’t do that.

I think these deals are ok if you have a big mortgage. The Nationwide have a really simple mortgage calculator just for the figures. But people are right often the fees wipe out the benefits of the lower rate. Especially if you have a relatively small mortgage. Easy to check.

The simple way to compare is to add the fees and make the payment the same and see whats left. that's 2 calculations in any simple mortgage calculator that lets you set the payment. If you just do the regular mortgage you have to take account of the difference in payment and the fee in some way. You may have a better savings rate or just want to spend it. Taking the example above using the MSE calculator and doing it taking account of the fees and payments. £100k 20y 1.44% £999 fee V 1.69% £0 fee amount.........rate.....payment.owing.........interest.....total cost...total payments £100,000.00 1.44% £479.79 £77,630.31 £6,417.77 £7,416.77 £29,786.46 £100,000.00 1.69% £491.33 £78,072.03 £7,552.02 £7,552.02 £29,479.99 that shows the fee has amount owing £442 lower, interest £1134 lower cost lower by £135 payments out(Inc fee) higher £307 NET £135 Then add the fees so the cash position is the same at the start(MSE does this). amount.........rate.....payment.owing.........interest.....total cost...total payments £100,999.00 1.44% £484.58 £78,405.84 £6,481.88 £7,480.88 £29,075.04 £100,000.00 1.69% £491.33 £78,072.03 £7,552.02 £7,552.02 £29,479.99 amount owing £334 more, interest £1072 lower cost(with fee) £72 less, payments out £405 lower NET £71 then make the payments the same(cash flow now the same for both just look at whats left.). amount.........rate.....payment.owing.........interest.....total cost £100,999.00 1.44% £491.33 £77,986.22 £6,467.21 £7,466.21 £100,000.00 1.69% £491.33 £78,072.03 £7,552.02 £7,552.02 NET £86 (the numbers are a bit different to MSE because it depends on any rounding and exact parameters into the functions uses.) Once you have the relative costs for each option you can consider other factors like interest rates on savings, having the lower payment. Also paying the fee up front or not makes a small difference as it is just the same as overpaying by £999, all you are doing is borrowing less and the savings go down a bit. amount.........rate.....payment.owing.........interest.....total cost £100,000.00 1.44% £486.42 £77,217.86 £099,001.00 1.69% £486.42 £77,292.09 NET £74

OK thanks James. Its not worth getting a buy to let mortgage tho seeing as though I wouldn't be making buy to let money on the property lol. My parents would be living there I would be just going onto mortgage but without living there.

Very nice but could do with them being fixed for a longer initial period……

You cant have 2 residential mortgages Unless you have permission to let on the first and are not living in it most lenders then will then allow a 2nd residential mortgage

There's a huge knock on effect, you've got international students not coming over either along with Airbnb cutting their staff by ~25%, the tourism market got hit hard. Which also means landlords aren't getting the income they once had.

Hi could somebody advise me. I'm wanting to go onto my dads mortgage to release some equity which will help me move into a bigger property. So basically I'm going to have 2 mortgages in my name. Will that be an issue with the lenders as long as I can show affordabilty of course. I want to do the RM shortly and take advantage of the low rates

Really? That's interesting, I've genuinely never heard of a mortgage being offered without an in person valuation being done.

It may depend on loan size? I moved house before the virus and both my sale and purchase were desk based.

No longer the most popular bank. It’s dropped it’s position and has bad ratings nowadays.

Interesting, I guess as it's a remortgage they were happy doing the desk valuation but I think youd struggle if you were a new purchase, I've not heard of desk based valuations before but I guess all they're going off would be house prices in the area. Glad to hear you managed to lock into a deal you were happy with though (y)

well done 8)

I’ve not had a proper look but did notice the direct 3 year <60% (over £100k) has dropped to 1.49% so I updated in the description

Any sign ? I looked on the intermediary site but didn’t see much different

How do you know more reductions are coming on the 1st? Thanks

Reductions possibly across all (or just some of the range). Chances are <£100k will be reduced but I anticipate still more expensive than >£100k rates.

For people with over £100k mortgages only though :/ ???