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 5 year Fixed Rate Mortgage 1.79% - No Fees @ Santander
5+++ stars +1.7k

5 year Fixed Rate Mortgage 1.79% - No Fees @ Santander

Santander18 Sep 17
Source: HotUKDeals | Deals > All categories
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2Good2Btrue
18 Sep 17
Just seen this deal from Santander:

5 year Fixed Rate Mortgage 1.79% - No Fees

Maximum LTV is 60%

Seems to be the best rate (currently) for a 5 year term without a product/booking fee.
Latest comments (184)
morgie
4 Oct 17 #184
Plug you details into the spready available at - locostfireblade.co.uk/spr…tml
RemoteControl
4 Oct 17 #183
Wondering if I can get some friendly advice please.

I’ve been offered the following 5 year fixed from Santander:

1.99% + no fee
1.79% + £999 fee

Mortgage: @ 307000

Also got the 123 account.

I have done some calculations and the 1.99% comes out cheaper over the 5 Years. However, ever few months I might overpay by £500-£1k.

Does overpaying now and then mean the lower rate of 1.79% + fee is actually the better option?

Thanks in advance.
james10999
3 Oct 17 #182
Hi All,

For any Santander customers that might want this deal, the best deals you can get for 60 LTV is:
1.79% with a £999 booking fee
1.99% with no booking fee.

I know the deals aren't as good as new customers but the advantage is that you don't have another credit check (they just switch you onto the new product with your updated info) and you don't pay valuation and solicitors fees to change product

Remember that you also get 1% cashback on your monthly mortgage payment up to £10 for your a 123 customer so worth factoring in for any comparisons as they don't do this.

Handy trick - If your similar to my situation where your current mortgage is at a slightly lower rate (I'm on a 1.24% variable - 0.99% + BoE base rate), normally they apply the new rate straight away. If you ask for your application to be sent via (long track by post), you have up to 3 months to send back the paperwork for your deal to go live. The rate will end on this product regardless on 2/1/2023 but worthwhile if like me you don't want to be paying the slightly higher rate over the next few months. Plus gives you flexibility that if the rates go any lower, you can phone up and get another application made no problem! If the rates go up in the meantime, send back your paperwork ASAP!
jjsm639
2 Oct 17 #181
My deal all agreed, first payment due November. Don't listen to cretins like pirelliwhateveryournameis, glass is always half empty. Ps 'sm' smart mortgage.
morgie
30 Sep 17 #180
Good stuff. How close to the end of your existing term were you?
JayMistry
28 Sep 17 #179
On the online application, in the key Facts illustration its says...

So that we can provide the mortgage to you, the following fees are payable by you.
Fees payable to Santander:
Please note that all fees paid or payable are not refundable.
The account fee for the provision and general administration of your mortgage. This fee can be
paid on completion or deferred until the end of your mortgage. If you defer the payment, this fee
will not increase.
£225.00
Other Fees:
You may have to pay other costs and expenses associated with your mortgage. These costs will
always be made known to you in advance.
itr786
28 Sep 17 #178
I phoned up Santander, after conversion with the branch worker that deals with mortgages, he said to move to Santander (from Lloyds) there's a (moving) fee off £225!?.....

I decide to think it over and see him in person, which will be doing person in a few hours...

PLEASE could someone confirm (as quickly as possible!) if this is/is not the case, so I can at least attempt to convince him to waiver this fee when speaking to him.
NO Fees should mean NO FEES right!?
I've a newbie to mortgages, Lloyds have said there won't be a charge for moving away from them...

PLEASE could someone assist me as soon as possible, my appointment is at 12pm today!

Thankyou
Pirellicalendergirls
27 Sep 17 #177
jjsm639, Good luck! Until you have a signed mortgage offer nothing is legally binding. jjsm639, wonder what 'sm' stands for?
JayMistry
27 Sep 17 #176
Started to apply online to remortgage and on the key illustration facts under "Confirm Mortgage" section it says, if I proceed with the application, you must complete by 29/12/17. My term ends on my current mortgage on the 31/12/17. So looks like there is cut off point to the product
jjsm639
26 Sep 17 #175
Stop talking claptrap pirelliwhateveryournameis. I contacted Santander and have this deal agreed pending checks, house valuation etc. Good deal thanks op.
Pirellicalendergirls
24 Sep 17 #174
Beware, Santander online applications. How many are accepted at the tempting advertised rate? Not impressed by my experience, and have gone with First Direct.
Minstadave
22 Sep 17 #173
Just phoned up and switched from 2 years about to end at 2.6% to 5 years at 1.89% with a £999 fee.

Seemed a no brainer. Kept my monthly payment the same and shaved 2 years off my term
gsusx
22 Sep 17 #172
This is fantastic. Thanks very much. Will give them a call and see where I stand.
mikepj
22 Sep 17 #171
Whatever your santander fixed deal is, I strongly urge you to give their mortgage operations a call as I have had my 3% early repayment charge waived and will save myself over £250 a month by going onto a much more competitive rate.

All their mortgage rates offered are based on the LTV percentages so ask santander to confirm what their valuation of your property is when getting quotes.... that way you'll get the best LTV & interest rate. They also offered me a free revaluation when I queried my property valuation as it was listed as £100k less than the market value and would have put me into a much higher LTV and interest rate band
dewilad
21 Sep 17 #170
Just try a local broker
mrmajika
21 Sep 17 #169
dewilad
21 Sep 17 #168
I am an Independent broker, just checked this deal does exist for remortgages with no valuation fee, arrangement fee or legal fees. In reply to midiman you could apply now as offer would be valid until Jan if that helps!
midiman
20 Sep 17 #167
I can change mortgage in January so this would suit me down to the ground. Do you have a link?
gunner90
20 Sep 17 #166
I'm looking to move my tracker with nationwide to this, have an appointment with Santander on Friday - does anyone have the product number?
Does this Rate with 0 fee's exist? Thanks
ahotukdeal
20 Sep 17 #165
When it use Habito there nearly £500 pounds of fees showing. Are we sure these are offset by the cashback the bank offers? Or are these being added as finders fees for Habito?
jrw
20 Sep 17 #164
I have just applied online - currently on a base rate tracker with nationwide at 1.59%. I think this is probably a good time to fix.
Luckily I have 40% LTV.
On the application on the KFI it mentions there is a £225 fee. I guess this is payable if you redeem or move to another provider.
bevers
20 Sep 17 #163
Agree it's 1.59% for me but either way it's a saving!
HotUKDealSeeker
20 Sep 17 #162
their website said no valuation or or anything fees
pantaiema
20 Sep 17 #161
No Product fee but when moving the mortgage there is still a valuation fee to be paid.
MEGAONE
20 Sep 17 #160
Am not getting what you don't get? My first mortgage was in 1993 ,it was an endowment mortgage where you pay interest on the loan and take out endowment policies to cover the capital.The best interest rate I could get was 12.6%
lanc1979
19 Sep 17 #159
Rates aren't everything.
Term, amount and other factors are important too. Everyone's situation is unique.

Please ensure you use a decent mortgage calculator to understand different products.
Major plug for this free one, which I use which allows you to compare two different mortgages in detail: locostfireblade.co.uk/spr…tml
Just keep changing the mortgage details until you find the best one for you.
kamran9558
19 Sep 17 #158
That's exactly what the banks want. Force people into thinking that the rate is gonna go up and everyone will look for getting a long term fix.
othen
19 Sep 17 #157
I've really enjoyed our discussion today, it is always good to get someone else's opinion, particularly someone different from oneself (in that you are a generation younger).

I'm really pleased that we ended up seeing eye to eye about all but the council house issue. Maybe I'm wrong about it, I suspect my personal experience has jaded my views more than I should (I grew up on a council estate until I was about 15 - and never really enjoyed it).

Perhaps the UK's biggest problem is that it is a really popular place to live (which is understandable: it is pretty well organised, safe and secure, on the whole fair, equitable and inclusive with free (at the point of use) education and health services) which means not many people leave and lots more come to stay. I can't help thinking that if we paved over all the countryside to build droves of council housing it would make it even more attractive and the population would grow even quicker.

That is enough for today, many thanks for an enjoyable discussion - I hope we didn't irritate the other subscribers wanting to find out about Santander's 5 Year Fixed Rate Mortgage too much!

Best wishes.
Ellendel
19 Sep 17 #156
I presume that's sarcasm based on the length of the discussion, in which case...fair! :wink:
livio
19 Sep 17 #155
Minimum amount aside, it is very likely you can specify the term of the mortgage when signing up. Good luck!
firstofficer
19 Sep 17 #154
You sure you don't want to finish what you have to say properly? I mean don't hold back..
adam0812
19 Sep 17 #153
That's what APR tells you and it factors in the costs and allows you to do an apples to apples comparison.
ran123ran
19 Sep 17 #152
Some lenders let u switch products within 3 months of your product end date eg nationwide.....must b existing customer though
Ellendel
19 Sep 17 #151
Haha - yes, luckily we haven't derailed the thread, so hopefully the discussion and our mutual verbosity is tolerable!

Very interesting re: the army officers salary. Much better paid/or swifter career progression than I had imagined! Also always interesting to hear about other peoples yardsticks, and business/personal perspectives. That wage would put a person in the top 20 (18%) of earners in the UK, so it does still seems maybe a touch high to me (to be an average), but if I'm honest I may be affected by personal bias based on graduating in the banking crash, and that may be mis-shaping my perspective on what percentile of earners London graduates can expect to be in.

I completely agree with more or less everything you said about the impact of interest rates on house prices.

I don't have a strong personal viewpoint on net migration. I think in fact what happened was that I misread some data from the ONS a while back (how embarrassing). I went to find the link for you and had a quick re-read, and realised my error. I had mis-construed the massive decline in the proportion of children as a projection of future net decrease in population, but you're quite right that the population is in fact just projected to grow, but with the percentiles of non working age folks getting larger. It looks like recently (10yrs) increased lifespans in the UK have added about 200,000 p/y to population on average, whilst migration has added about 250,000 p/y. Thanks for the prompt to re-review! Very interesting.

I think our only remaining point of real disagreement is on the council housing. I think the sell off of council housing (at significant discount to people who had already been in receipt of public subsidy) was a terrible terrible deal for the tax payer. Especially given that councils have often then had to rent a similar number of properties back at market rate, competing against private tenants. In the long run, without government house building, I think that's going to end up (and may already be) costing the tax payer more. If I had my way I'd like to see public house building back, but all run at a break even, with some access for private tenants, and with homes only ever sold at the market rate. It seems logical to me that the government should be able to save money over BAU by doing this, or buying to let would not be viable! I suspect it doesn't happen due to a combination of short-termism and ideology, which I think is a shame - but maybe that view is coloured, once again, by my personal bias.

Anyway, that's probably all meandered vastly off topic now, so I'll stop. Nice chatting though!
PulisOut
19 Sep 17 #150
I don't see it as being brave or dead money but it really depends on your circumstances. Having a property with money tied up in it means nothing to us at our age. And if property prices continue to fall like they've done for the last 3 months then when you add in interest earned we might even be better off.
Lets say our rent is £10k a year, say we were looking to buy at around £200k - during our house search we've seen them fall 5-20% in 30 days. So hardly a risk, and if the interest received goes up to say 3% we are quids in.
mcx
19 Sep 17 #149
Thank you so much! Makes perfect sense now, I really appreciate it :grin:
MattyKHZ
19 Sep 17 #148
Can anyone confirm how acceptance period works?

I thought once you had gone through the hassle of being accepted for a mortgage it is valid for a certain period of time, potentially up to 6 months.

HSBC advisor just stated it is 6 months but only once you have paid the arrangement fee. So I guess it means you lock in at the rate and can start it in 6 months time if that rate is currently higher than your existing rate? And if no arrangement fee how do they lock it?

I guess this is where a higher fixed rate and lower or zero fee may be more beneficial.....
firstofficer
19 Sep 17 #147
The small print is indeed important here.

Warmth added.

Kind regards.
robbrown4891
19 Sep 17 #146
Fair play mate - Good luck! Think we will all be on 5% soon judging by the inbound base rate hike
MattyKHZ
19 Sep 17 #145
OK online it states 60 days but that is for a decision in principle not an acceptance offer:

"You’ll need to get an instant decision in principle first. This tells you if we could lend you the amount you need based on your monthly income and outgoings. It’s free with no obligation and is valid for 60 days. Plus it’s only a soft credit check which means that it won’t affect your credit rating.
You can then apply for a mortgage online."

So I guess you get an OK which is valid for 60 days, then have to go through approval where you can till get refused, and if approved then that approval is valid for x months whichever it is correct. With x being 3 or 6 months or whatever Santander state it is at the time.

Hopefully if anyone who has used Santander for a mortgage recently can advise....
MattyKHZ
19 Sep 17 #144
Someone on phone had to check that but I would not take anything given verbally until seen in writing. At first he suggested 3 months then 6 when I asked as am sure HSBC or First Direct offer 6 and that is a factor in my decision making.
MattyKHZ
19 Sep 17 #143
Ok what I have learnt from this. Not only do product fees and arrangement fees and all the other fees have to be taken into account every time you switch, so does the end of product fee. I guess before switching you started, paid whatever it cost over the duration, remortgaged when moving to a bigger house, paid off early when you came into money and paid to end the mortgage paperwork.

By moving every 2 years or so you get to pay all those associated costs over and over again.

Based on my figures and only mine the Santander product works out best over the 5 year period and that is the only certainty due to the fix duration. After that SVR comes into play and First Direct/HSBC currently beat it hands down. Not that they cannot change that in the next 5 years but none of us have crystal balls.

The topcashback link I mentioned earlier only offers mortgages from Santander and Atom amongst others. Atom is 1.84% Fixed for 5 Years and Broker only and current SVR of 3.75% against 3.69% for First Direct/HSBC.

So First Direct and HSBC win if you have an account with them or are prepared to open an account with them. If doing something like a mortgage a bank account at same time is probably not much more hassle unless credit check counts twice.

Santander does not need an account but getting one gives you access to cashback, 1.5% interest up to 20K and a 5% regular saver. Plus topcashback through habito should also work with this product.

All I know is a 5 year fix is a good idea for me but I still don't know which of these to go for. It's the Santander SVR after 5 years that worries me.
MattyKHZ
19 Sep 17 #142
And lastly:

Accepted Mortgage Application
£252.50

Habito via TopCashback deal with Santander.

Their market comparison also came up with Santander 1st and HSBC 2nd for my figures.

According to my KFI there is a £35 and £225 charges at end of mortgage for finalising everything etc. That is little different to the product I am moving from. Their KFI mentions £184.75 legal fees but reckon they are recovered by a £250 cash back which is different to Santander mentioning Standard legal fees paid if you're remortgaging to us from another lender. You only need to repay the standard legal fees paid (worth £200) if you repay your mortgage in the first two years.

I am going to check with Santander again and then make up my own mind whether potential (which may not be paid) £252.50 is worth it or just go straight to Santander.
drewbles82
19 Sep 17 #141
I don't know much about mortgages but i like to plan ahead, work costs out if i can. For a one bed flat its 80k round here. I'd be able to put up to 15k deposit, with some put aside to help with furniture and ideally a years worth of mortgage payments/bills/food. Anyone got a clue what sorta rate id be able to get. I have a friend who just got a 75k flat but 7500 deposit and monthly payments of 300
Randle_SAFC
19 Sep 17 #140
Not in a position to pull out the fee at the moment. I think it's about 2% though. Only have £67k remaining, I think.
Randle_SAFC
19 Sep 17 #139
It was a 5% deposit one when I bought it. Didn't have a large deposit but need a home quick.
MattyKHZ
19 Sep 17 #138
Of course. I can only comment for my own numbers as do not have a crystal ball and am not a mortgage advisor.

I did quote the simple tool anyone can use to compare products for themselves.
lilacjumper
19 Sep 17 #137
The other benefit of the First Direct deal is that the ERC is potentially much lower, although it depends on two different factors. With FD it is dependent on your initial amount borrowed at a rate of 2%. Whereas Santander is based on amount outstanding at time of switching deal but at a rate of 6%.
rcfc87
19 Sep 17 #136
Hiya - the offer is for 6months?
Online it says 60days only?

Thanks
Nicole
dybydx
19 Sep 17 #135
And if no one has mentioned already if you have a Santander 123 account you'll get 1% back (up to £10) in cashback for paying your Santander mortgage via DD.
MattyKHZ
19 Sep 17 #134
For anyone interested when I phoned it takes approx. 1 hour on phone. Agent had to check when asked but offer is valid for 6 months so if accepted and currently on a lower rate could sit with current provider until the notice is nearly up then leap.
CartoonHead78
19 Sep 17 #133
I dont get this has this always been the case because in 2005 we got our first home (£93k) with 0% how was that possible we did not give any deposit im sure of it, its down to £72k now with 18 years left?
harrysj
19 Sep 17 #132
I'm 1.39% 2years fixed (£999 fee).
Platform mortgage
delsaber
19 Sep 17 #131
Yeah, 10% is minimum by law on all mortgages. Something to do with allowing people to repay their debts IIRC
delsaber
19 Sep 17 #130
Really? We move tomorrow with a nice 1.89% 5yr fixed so glad we got that in time!
othen
19 Sep 17 #129
This is an interesting discussion across the generations - I hope other subscribers interested in this mortgage deal don't mind us using the space!

I've just a search on Rightmove and have to concede you are right about house prices on the Surrey/Hampshire border, there is nothing much to be had under £300,000. I didn't check prices in Clapham but the differential was always about a multiple of two and a bit - so £650,000 sounds quite plausible. I live in the East Midlands and East Anglia now (several houses - long story), so I'd lost touch with prices in the South - you were absolutely right and I was wrong.

I'm not sure I have overestimated salaries though. As a yardstick I always refer to Army officers' wages (that is the job I was doing in 1984); I've just checked the AFPRB and see a captain on appointment (as a graduate with 3 years experience would be) pulls in just over £40,000 PA. We will have to agree to differ over that point, but in general you are right, there is now a multiple of nearly 8 between wages and the cost of the Surrey house (and of course double that for a Clapham place).

The main driver for the increase in the differential (apart from the increased population, we can come back to that later) has been, ironically, the very low interest rates we enjoy now. What happened as interest rates became more affordable in the nineties and noughties (is that a word? the decade after the turn of the century) is that house prices increased to fill the affordability void (apart from that blip in 2007 when they had expanded just too quickly). The result is that mortgage outgoings as a proportion of income are much the same (they sort of have to be) as they were in the 1980s. I take your point about deposits being larger now, but I think this was the case back in the 80s as well. I read in one of the posts above that one can now get 90% mortgages at about 3% and that lenders are now taking on 95% mortgages (the end is neigh!), I remember that was more of less the same in 1984 (I had to sell my car and pushbike everywhere for a year or so to raise the deposit).

I think we will have to disagree again about the effect of population growth. When I was born there were 50,000,000 of us Britons, now there are 64,000,000 and by the time I die in 20 years time there will be 75,000,000. I cannot agree that is not significant: a 50% increase in an already densely populated place in 75 years is the main reason demand continues to outstrip supply. I also have to take issue with your point about the UK's population only increasing because we are not dying so young. Whilst the NHS (and others) have done a good job in extending lifetimes, this in no way can explain an increase of 300,000 per year, just think about it, there cannot be an additional 300,000 pensioners every year when there are about a million in each year anyway. The fertility rate has been low since the 1970s, so the only plausible explanation for the continued and continuous population increase is net immigration. I have a feeling you may have personal feelings about that which I would not want to impinge on, but it is an inescapable fact. This may not be bad of course, unless we find ways of utilising older people that are more fruitful than watching Jeremy Kyle all day then we may well have a labour and/or skills shortage (but that is a thorny one - not for discussion today) that might be ably filled by immigrants (but we still have a problem finding places to live).

I think you may be right about the rental sector having to get bigger, but I'm loath to encourage governments (whether central or local) to use my taxpayer's dollars to as a subsidy (i.e. build and let council houses cheaply). A better route would be to encourage a much larger private rental sector and at the same time regulate it properly so people like you don't have to put up with damp and shoddy electrics. I'm a private landlord (as I note are you) and also an electrician (not as a business, but it saves a lot maintaining my own properties - and I know jobs are done properly if I do them myself) and I take a pride in ensuring my tenants have good, safe places to live.

Gosh, this has been a long comment. You sound like a decent chap and I hope you don't take offence to me disagreeing with some of your points (whilst obviously conceding where you have been clearly right).

Good fortune Ellendel.
DealAnarchy
19 Sep 17 #128
Likely, I can't wait for them to rise! Hopefully property will become more reasonably priced for first time buyers such as myself. House prices have been kept artificially inflated due to emergency interest rates for years now..
Ellendel
19 Sep 17 #127
LTV means loan to value.

So, if you have a house worth £100,000, which you bought with a £20k deposit, and have so far paid off a further £20k of the original mortgage of £80k, that would mean you owed a remaining £60k on the mortgage.

Having a mortgage of £60k on a £100k property would mean that you had a 60% loan to value ratio. Because you would own 40%, and have a loan on the rest of the total value. A lower LTV puts you in a better position.

In your mum's circumstance, she has a loan for 40% of the value of her house, which is great (her LTV is 40%), and means she should (with reasonable credit) be able to get more or less any mortgage deal. :smile:
alexlv
19 Sep 17 #126
You forgot to say that you crunched YOUR numbers. All depends on how much you borrow. For someone with larger mortgage HSBC will be much better and vice versa.
Lareon
19 Sep 17 #125
Why not pay double and overpay if you can instead of reducing the term. If you do it this way if you ever need to stop paying double (for an emergency or really need the cash etc) then you can just switch to paying the smaller amount. this gives you freedom where switching and locking yourself into a higher payment means that no matter what you have to pay the higher amount.
mcx
19 Sep 17 #124
I'm probably going to sound really dim but I need to start learning how mortgages etc work. I'm quite money savvy in general but mortgages and mortgage terms just go right over my head!

My mum bought her house for £29,500 and has borrowed money against her mortgage taking it to around £36,000 outstanding. The house is now worth around £90,000, does anyone know if she would qualify for this? I don't really understand what is meant by the 60% LTV :persevere:
BroadbandBilly
19 Sep 17 #123
Kamran, that's very true: the banks never lose. Just remember: the biggest welfare cheque in British history was written not for the unemployed, the needy, the under-privileged or the disadvantaged: it was written for the banks (to bail them out). We are all slaves to the banks, even if we have no private debt of our own. How? Because the average UK household pays £2,400 each year in extra tax just to pay the interest on local & national government debt. It is beyond immoral!!!
kamran9558
19 Sep 17 #122
Absolutely correct. You can judge whether the interest rate will go up or remain the same by looking at the amount of 5/10 year fix products in the market. Remember that banks are there for profit, they never lose money.
bobziz
19 Sep 17 #121
The ERC looks a bit steep on this ?
m1chaels
19 Sep 17 #120
Not been 3% for a long time - try 1.5%
MattyKHZ
19 Sep 17 #119
1.5% actually.
MattyKHZ
19 Sep 17 #118
I've just crunched the numbers as been looking at moving from a Lifetime Base Rate Tracker currently at 1.44% to something like a five year fix.

moneysavingexpert.com/mor…tes is a good tool to compare what difference there is between mortgage products. Used this to show Santander with no fee and HSBC 0.2% lower rate but £749 fee works out pretty much same over the 5 year period. And that's not taking into account 1% of payment cashback possible (max £10 per month) with a 123 account.

Nobody knows what interest rates will do but I do not believe they will stay low and by moving to a tracker to a fix it would cost me £1132 extra over 5 years on the fix if nothing changed in interest rates over the next 5 years. Taking into account £600 back in 60 monthly payments having a 123 account I think for peace of mind it is a no brainer.

So either this or the 1.59% with £749 fee 5 year fix at HSBC is best at moment and it all depends if you meet criteria of the associated accounts, £500 monthly pay in for Santander 123 but 1.5% Interest to 20K, cashback on monthly bills etc.

I a with Santander at the moment so makes sense to do this, otherwise would get wife to transfer to HSBC, get switching incentive and open this mortgage but that is more hassle.
Simon.Williams
19 Sep 17 #117
As others have stated, this is for people transferring from another provider to Santander, however, to correct someone who said best deal was 2.09... I signed up yesterday, moving from a 2 year tracker to a 5 year fix. The deal is 1.99 with NO FEE or 1.79 with a £999 booking fee (for existing customers). It wasn't worth paying the fee, as it worked out I save £170 over 5 years. I am better of keeping the grand in my 123 accounts and earning 3% on it.
Ellendel
19 Sep 17 #116
I don't think you'd get a three bed house for £250k anywhere in Surrey now, but you might start to find stuff suitable for normal residential mortgages at about the £300k point, and then maybe £650 to £750k in Clapham (for a similar house).

I think you may have also overestimated graduate salaries by a margin. I think a top tier graduate (maybe the top ten percent - luck or skill), might be on about an average £35-40k in London after 3 years. I know many many who are on more like £25-30k after 5+ years, although many of them graduated during the recession. It's all very scattered and of course the top 0.1% will earn a lot more, but to put it in perspective, a doctor will usually make about £35-40k in the third year after graduating (and of course they graduate 3 years after all other degree holders, so you could technically think of this as a sixth year comparative wage).

I think, if you re-run those figures, you're looking at an 8x income to earnings differential for the house in surrey. You might also be able to consider getting a flat in zone 3/4 for those kinds of costs (and I think that's a more attainable living standard now). Either way, that's nearly double what people in earlier generations had to deal with, for a living standard that is markedly worse.

You're absolutely right that costs (monthly) probably end up being comparable, but in a way that's less relevant, as none of those people will be meeting the income multiple minimum barrier (4.5) even if they have a £100k deposit.

You mention that you will be able to provide a home for your son - which is great, and I'm happy that you and he will have that opportunity - but it seems a shame (more generically - and not in reference to your situation) to have created a situation in which home ownership in certain areas will likely be purely down to a genetic lottery (time of birth, or lineage) rather than hard work.

As you say though, there are underlying factors to this (I'm not sure total population is one of them, but local population almost certainly is). Maybe rental is going to become more and more common. I hope that if it is, the level of government involvement in the market increases massively. My present home is extremely poor quality, but it's a landlords market in my area, and any complaints about the general standard of accommodation (we have mould due to leaks from the flat above, faulty electrics, and other issues) are generally met with soft hints at the impending threat of eviction or rent rises. I wouldn't mind renting, if it didn't mean being at the whims of 'some guy', and packed in like cattle.

You seem like a really stand-up bloke by the way, so please don't take any of this as hostile criticism.

Thank-you also for your well-wishes. A few years back, I bought a house back in my hometown, so that I could at least have an exit plan, and for now I rent it out. Moving away is of course a solution (and it feels like the only one), but that will create problems of its own for London (and similar areas) in the long run, especially if those 3rd year Doctors and other critical professionals decide that they can get a better quality of life in Europe, the US, Canada Australia etc (which I suspect they can).

The other issue that I feel is linked in the UK, is the total fertility rate - at 1.8 and falling - which puts us in long run decline, and will exacerbate issues around elder care/pensions etc in the future (whilst it's true that the UK population is growing, this is essentially only because people aren't dying at the rate that has traditionally been expected - working age population is actually static and projected to decline, with present rates of immigration/emigration - something that never seems to be covered in the media!).
yant
19 Sep 17 #115
I am confused about your expectations. If I take a fixed deal, I do it for security of future payment. It protects me if the interest rates go up, I am not affected. However, the T&C are very clear regarding redemption charges and I know that if the interest rate go down, I will not benefit. If the interest rate go up, I do not expect the lender to phone me up and tell me that actually they would like to switch me to a higher rate. However, I don't demand that they let me switch to a lower rate without cost either.
Accacin
19 Sep 17 #114
Oh come on. Stop watching Channel 4. Benefit fraud is a tiny percentage of the overall cost.
adam0812
19 Sep 17 #113
Not done much research but YBS doing 65% LTV 1.69% 5 year fixed with £999 product fee. ybs.co.uk/mor…tml

Just pick up the phone and speak to a broker though, an hour of your time and you will know what you qualify for from most of the market.
Kay135
19 Sep 17 #112
Unlikely they will let you switch deals early as they price deals based on the risk at the time you take it out. Normally there are 'early repayment charges (ERC)' whilst you are in the deal period.

Moving houses is referred to a 'porting your mortgage' so essentially you need to check your paper work to confirm if your mortgage is 'portable'. The new property still has to meet the lenders criteria such as the value vs loan amount (Known as Loan to Value or LTV), construction type or other criteria. Good news is that most mortgages are portable providing you meet the lenders other criteria. Hope that helps a little. :smile:
cazsilver
19 Sep 17 #111
I`m currently with Santander. My 2 year fix runs out end of January. So annoying when they only offer good deals to new customers.
so the 1.59 for 2 years or 2.09 for 5 years, do they have a fee? I would like to fix for 5 years if I can get a good deal. Anyone know of any better deals? I`v been on property ladder for 25 years so have 60 LTV. Mind would be less hassle to re-new with Santander!
Kay135
19 Sep 17 #110
Agreed but please be aware not all lenders allow a payment break, even if you have over paid in the past.
adam0812
19 Sep 17 #109
Entirely dependent on your circumstances, how many people know they are going to stay in their property for 10 years? Sure porting is an option but if your lender won't lend on the property you want to move to for whatever reason you might be stuck paying a decent penalty on these longer term fixed deals.
adam0812
19 Sep 17 #108
You can remortgage anytime you like, but if you're on a fixed rate there will almost certainly be penalties, typically on a 5 year fixed mortgage you pay a 5% penalty if you pay it of in the first year, and that reduces 1% each year, after the fixed term ends you are free to switch without penalty. Ask your bank what interest rate you are currently paying and if there are any penalties, with this info to hand you can speak to a broker and they will be able to tell you whether there is a more cost effective solution.
BroadbandBilly
19 Sep 17 #107
Robert Peston reckons "rates will rise significantly sooner than next summer ". Other "experts" reckon rates will rise this November. I have offered Mr Peston a five-figure bet that, not only will rates not rise "sigbificantly sooner than next summer" but they will not rise in 2018 at all. He has yet to take me up on my bet.

There is a reason we have record low interest rates, & it is not (as we are so condescendingly told) to promote growth. We have growth, thank you very much.

Just think about it. In the 323 year history of the Bank of England, interest rates have never been even remotely close to as low as they are now. In all of those years we've been through recessions, depressions, global depressions & even world wars, yet not once in all of that time did we need rates this low. So, ask yourself, "what's the REAL reason for interest rates being so low?". And when you have the answer, you'll realise why rates can't rise.

Carney is just trying to move markets by talking rather than by action. It boosts the £ and generates huge revenues for his banker buddies in the city. How? Because SVR or discount rate mortgage holders panic & pay a fortune in arrangement fees to jump onto fixed rate mortgages. Watch carefully & you'll see it happening.

As deals go, this looks pretty good (not voted either way) but the base rate will go negative before it rises.
Kay135
19 Sep 17 #106
Yes you can reduce your term to 5 years at the same time as a switch, providing it's affordable for you (if it's a small loan, shouldn't be a issue). Also investigate what their overpayments facility is so you could have a longer term but then look to pay off all of the mortgage by the overpayments, however have the flexibility of the lower mandatory monthly payments.
adam0812
19 Sep 17 #105
I've just bought flat with a 90% mortgage with a rate of 2.75% fixed for 2 years, no product or valuation fee with Skipton. Some lenders doing 95% mortgages though the rates are of course less attractive. Can still get the help to buy scheme on new builds which requires a 5% deposit as well. Also before you say my rate is high, if you think you could afford a mortgage at 1.79% but not 3% you would likely be rejected on affordability anyway.
the.porter
19 Sep 17 #104


Jeez your braver than me paying dead money out every month, they have been scare mongerong about rates going up for years and they go down ,this country is still in too much shite for them to drastically increase interest rates, 0.25 rise if that in the next 5 years imo
othen
19 Sep 17 #103
I sympathise, but as I said before nothing much has changed on the past 35 years, except the population keeps rising (by on average 300,000 every year, so there will be roughly 10,000,000 more people to house in the same sized country).

I bought my first house (a nice 3 bed semi in Surrey) for about £40,000 in 1984, a similar house in a London suburb like Clapham would have been a bit over double that (I remember looking at the time and deciding the difference was not worth it) - I think that differential has probably been maintained and the prices would be £250,000 for the place in Surrey vs. £550,000 in Clapham (very rough estimates) today. I suppose a reasonable wage for a graduate plus 3 years experience in those days was about £10,000, against £40,000 today - so you are right, house prices have gone up from about 4 times a multiple of salary to around 6 times today. The counter is that interest rates were 12% when I bought my first place (and very quickly rose to 15%) whereas today they can be (like this deal) 1-2%; having managed a 15% mortgage (and had to pushbike everywhere and eat packet soup to survive) I can tell you it was very hard indeed.

I know it seems like you will never be able to climb the house ownership mountain, but it was the same 35 years ago, the numbers are just bigger but inflation is slower and so interest rates are far lower.

The overpopulation issue is one that will not go away, the population keeps increasing by 300,000 PA whatever successive governments do to stop that happening, so by the time I die there will be 75,000,000 of us living here. The demand for housing will only keep increasing - and the answer is not just to build houses everywhere, otherwise the quality of life for all of us will just diminish. It does mean that the equation of demand vs. availability will continue to be challenging. That may not be much solace to you as you patiently save for a deposit, but it worries me as well - my son is 13 and his generation will find it very difficult to purchase property, but then property ownership is not for everyone. I'm fortunate in that I'll be able to give my son one of my houses when he needs it, but the wider problem for his contemporaries still concerns me.

If you wanted some advice from an old man (I'm 56) then buy a place as soon as you are able and take advantage of low interest rates like this deal, the country is not getting any bigger.

Good fortune.
JeffsterRule
19 Sep 17 #102
Voted hot as best rate for a 5y fixed but

Personally I would not go with this as 5y v First Direct 10y at 2.49 someone posted a while back. I think stability for an extra years is worth the extra .7%, particularly as they are indicating rates to rise sooner due to inflation.

mortgages.firstdirect.com/mor…9-5
itr786
19 Sep 17 #101
He,
Serious question, how difficult is it to change from one bank to another, I presume that is the term 'remortgage' come from?..

Sorry I'm a bit of a novice, and it's literally a minefield region to figure out how is all works!

I have a around £50k left to clear on my mortgage, so still a fair bit, not soo much compared to others no doubt, but my house value isn't eye wateringly high anyway.

Hopefully that will be cleared by the time in 65!.
dodgymix
19 Sep 17 #100
inflation from Brexit caused by weak £ hasn't really got going although supermarkets / fuel etc will see prices start rising quicker and that money sat in the bank (on rubbish returns) will deplete in value.
PulisOut
19 Sep 17 #99
Wow, might have took this last week but since I've decided to pocket our house sale and move to rented. I'm concerned the market is going to crash (although that's good reason to get a fixed). Cash is king for the next 5 years in my opinion as interest rates will surely go up and might go up fast as we get a new Bank Of England boss. Also my research over the last 3 months tells me the are a lot of former rentals coming and prices are going down.
dodgymix
19 Sep 17 #98
5.49% wow... have you considered breaking your fix and paying the ERC

You'd save money unless the ERC is c. 5%

example
£200k mortgage = 5.49% so £10,.980 int PA (£15,555 over 17m)

say 3% ERC = £6k
£200k mortgage = 1.79% so £3,580 int PA (£5,072 over 17m)

so int costs £11,072 switching or £15,555

Factor in potential base rate rise (at least a quarter early next year based on recent reports / jump in FX rates) and low cost mortgage
dodgymix
19 Sep 17 #97
Branches are closing as no one uses them.. you can do just about everything on a mobile phone banking app / internet as you can in a branch other than pay cash/cheques in and im sure some apps let you send a photo of the said cheque in.

Its crazy that a £70k mortgage taken out over 25y 10-15y ago would now have identical monthly payments to a £100k on the present best rates.

I was chuffed to get 4.5% on my first home @ 85% LTV on a 2y fix back in early 00s
m1chaels
19 Sep 17 #96
You get 1% back on your mortgage payments up to £10 (£1000 mortgage payment) per month so max £120 pa. Not quite the same as 1% of your mortgage balance....
ludwig352
19 Sep 17 #95
Or just spend your day making up incendiary scenarios on the Internet to encourage hatred.
Ellendel
19 Sep 17 #94
I'm always interested in this kind of thing. Can I ask when in the 80's? I have a few older friends and colleagues who bought around that time, and got hold of 3-4 beds for circa £50k (in Brockley, Clapham, Balham type areas - which were less nice then).

What was a decent but achievable salary at the time? I suspect about £10k+ in London, for a professional?

I'm in my 30's, my wage is pretty fair (but not ostentatious), I live frugally, and have a large deposit (close to double my annual wage), but there's almost no way I could meet the criteria (4.5 income multiple) for purchasing a home in Zone 2, let alone a house, or even a flat with more than one bedroom. I'd struggle to get anything in zone 3 either. I wouldn't be able to buy any kind of house in any zone. I currently live in a room in a share house, and have done for ten years. It all feels fairly pointless, and a bit bleak.

My theory is that, in terms of access to housing on a monthly cost basis, you're absolutely right that not much has changed too dramatically in most of the country, but I think there are hotspots where actually, there's been huge shifts (London, Oxford, a few area's that people like to retire to - villages in Cornwall etc).

Also, don't forget that there is a risk differential - interest rates can probably double or even quadruple from where they are now without surprising anyone, but they were extremely unlikely to do so in the 80's/90's (hence the income multiple restrictions). I guess that might offer hope for people in the future, as the monthly affordability ratio might bring house prices in those areas down, but it's a bit scary when you see people stretching themselves to their limit now!
dazza99
19 Sep 17 #93
£999 fee for me as an existing customer but still not a bad deal
MEGAONE
19 Sep 17 #92
:rage: Sorry rcfc87 for so many quotes,really detest this new interface Hukd has decided to use :rage:‌ :rage:
MEGAONE
19 Sep 17 #91



Mine ends in Jan 2018 .Most banks will give quote 3months b4 your mortgage ends,this can work to your advantage as it means if rebate drops you can get another quote,if rate goes up you have a lower rate with quote.However Was informed of one bank First Direct that are offering a 1.84% no fee 5 year fixed and will hold quote for 6months which is worth looking into.
marchillis93
19 Sep 17 #90
A little jealous, I just accepted a 3yr fixed with HSBC at 1.79% If you're looking for a mortgage and new current account then this plus the Santander 123 account would be incredible! you get 1% cashback on your Santander mortgage plus a bunch of house bills between 1-3%. Added with the 1.5% interest on the current account balance is a very louring offer right now.
robbrown4891
19 Sep 17 #89
Jesus 5.49% - Dare I ask?
robbrown4891
19 Sep 17 #88
Wow, 1 month in to my 25 year FTB mortgage and 2% base rate hike murmurs come back....'Great news' but great deal OP!
Randle_SAFC
19 Sep 17 #87
I'm trapped for another 17 months at 5.49%. B'ah.
lilacjumper
19 Sep 17 #86
It looks like there is an ERC of 6% on the outstanding balance.
stevenBrannet
19 Sep 17 #85
i very good rate and period. Shame my mortage is not due until next year.
jagoman
19 Sep 17 #84
Thanks. Perfect timing.
rcfc87
19 Sep 17 #83
Thanks for this OP

If my current mortgage will end in February 2018 - can I apply for this yet? Sorry I dont really understand how these deals last etc

Thanks
nicole
prisat
19 Sep 17 #82
This morning one of the headlines said that the rates will go up twice next year. Policy makers are "Scar Mongers"
prisat
19 Sep 17 #81
Correct, there will be some individuals here who will target you saying that this is not for first time buyers but for transfers.

House being 250k ? Just curious, where do you live ?
HotUKDealSeeker
19 Sep 17 #80
Yup! That's what the experts have been saying for the last 10 years! "Rates will rise in the next few months or 6 months or a year" and yes.. everytime. they will say "this time it's different, it will rise".. crying wolf enough times and it will bite you in the butt! No idea what I'm trying to say..

Great deal though!! voted hot!
ashman33
19 Sep 17 #79
Everytime I have remortgaged over the last 10yrs the rate has dropped. I'm not sure they can keep dropping but they do!

There is a reason banks are closing branches and shedding staff at an astonishing rate - mortgage lending is moving towards a low margin business. The net interest margin is dropping (diff between interest paid out and on loans). Also increased regulation costs. Then there is automation of decision making.

on the demand side there isn't enough business around to support all the current lenders out there. The older generation will be paying off their mortgages but not enough will be getting mortgages in the younger generation. Hence why policies such as help to buy are required as without them there would be a collapse in the money supply. This is because banks create money by lending.

On the deal 5yr fixed I expect the redemption fee is pretty high. It's cheap money , and you mitigate the risk of interest rate rises increasing your mortgage payment. It's the cheapest I have ever seen.
dodgymix
19 Sep 17 #78
Post office have some ok rates although they don't provide free legals so adds £500-600 to cost.. my piddly B2L worked out better staying at 3.29% with existing provider fee free :rage:
eligh3121
19 Sep 17 #77
This will be a very good deal if the rates stay the same but take into account that this isnt fixed, its variable minus a discount for the first 5 years. Nothing wrong with them, I'm on a 2 year discount now, they are the cheapest available atm.
Malabus
19 Sep 17 #76
Interest rates are expected to rise in the forth coming future, inflation reminds high and will stay that way, worth considering.
whymails2000
19 Sep 17 #75
bkpatel
19 Sep 17 #74
Any reason why? It's just to sort myself out in the short term before paying it off. I'll still be saving the difference and paying 6 monthly or annually.
MEGAONE
19 Sep 17 #73
Thank you. Will definitely ave a nosy at this. :thumbsup:
Jawz
19 Sep 17 #72
Yeah mad. Can remember reading into it and they (May have changed) could lend up to 10x the amount of money they actually hold.
So that 5% they are lending is actually 50%.

Plus your wages usually go in there anyways. So they already have all your cash and then you pay interest. All corrupt madness. Most of the world in debt....but to who? Federal banks and the top few % who want to control the masses.

Oh ya could go on forever with the conspiracies and underhand practices that go on with currencies. Tis why China is trying to cut out Bitcoin and other crypto currencies as it devalues fiat currencies and moves the masses away from manipulation.

Anyways, got a bit too deep on it all. Will have to save up a decent think, to get a decent rate as unfortunately can't afford a home outright, so have to dance to the banks merry tunes for now!

THE END
MEGAONE
19 Sep 17 #71
Agree.Bought my first home in 1993 and best rate I could get was 12.6%.More horrible it was an Endownment Mortgage. :grin:
Lefty
18 Sep 17 #70
First Direct allow you to reserve a rate 6 months from the end of your current deal. They are offering a 1.84% no fee 5 year fixed at the moment - which I have just taken up.
MEGAONE
18 Sep 17 #69
Unfortunately the 3 months comes into play from end of October.Hope others can benefit from your comment :thumbsup:
coolcolin
18 Sep 17 #68
Sure you can Get a quote now if within 3 months of the one you have ending.. if goes up you have the quote if it goes down you can re-quote win win
MEGAONE
18 Sep 17 #67
Grrr! Would have loved this deal,unfortunately have to wait till end of October before getting new mortgage quote
Please let their be something even nearly as good as this
BroadbandBilly
18 Sep 17 #66
Banks charge interest on money they create out of thin air! It is beyond immoral!!! And if you can't repay they take your home. This is how banks make money out of people who can't afford to repay.

Rant over. Not voted either way.
kamran9558
18 Sep 17 #65
Increasing the years will help but I'll suggest against going for the interest only products.
nbuuifx
18 Sep 17 #64
We've got a "One Account" with a relatively high rate of interest. I've not changed it because I like the flexibility of the one account. However I realise I could save money by switching.

We currently have about 40% LTV however if I kept it at that we would have no spare funds, so realistically I expect we would have to mortgage for about 50% LTV and set up an easy access savings account too.

How easy is it to switch?

Is it worth tarting things up in the house before the valuation (decorating bits which are starting to look tired etc.?)

What paperwork do they require - wage slips etc.?

Our current mortgage is only our second mortgage and we only changed because we moved house.
m1chaels
18 Sep 17 #63
No chance, even if you have only one payment left they would insist on you paying the full erc to move to another product. Aparently there is no legal requirement for the the erc to have any relationship to the bank of the costs they incur from early repayment. For me it could be a 15k erc with one monthly of 625 remaining on the fix :disappointed:
adsthompson
18 Sep 17 #62
Men in black?
smartdeals123
18 Sep 17 #61
Thanks
bkpatel
18 Sep 17 #60
Hello,

Can someone tell me the main factor that could help increase my borrowing?
I know someone will say earn more. I know that one thanks.

Does increasing the repayment years increase borrowing amount?
I asked about interest only mortgage. That doesn't help.

Thanks in advance.
mjmani
18 Sep 17 #59
Hard work doesn't pay 'cos the British have their brain tucked in their backside
gsusx
18 Sep 17 #58
I was being lazy wasnt I. :joy:
mkwaqar
18 Sep 17 #57
Where did you find it on the website that their will be no Fee if you move mortgage to Santander from another provider?
madbull
18 Sep 17 #56
You're right, I somehow missed the 1
emsabobs
18 Sep 17 #55
I think it’s £1750 a month..... not £750.
Pughy
18 Sep 17 #54
Go towards the bottom of the table and then click 'SHOW ALL' which will then give more options including the one described by the op
KFH2009
18 Sep 17 #53
Thanks for this. I'll certainly contact them as soon as I can, to see what is available. On the other part, got the rate down from 4.19 to 2.09, we now still pay the same each month, but the term is now 4 1/2 years less. Hoping to do the same with the 2nd part of it!
cmdr_elito
18 Sep 17 #52
Better to take the 10 year term and overpay. That way if your circumstances change you can either pay the required amount or take a payment break!
othen
18 Sep 17 #51
That was a really good comment and will help people understand. It is much as I thought: that there are a number of similar products, some clearly more attractive than others, but only the least risky borrowers will qualify for the best deals.

I'm beyond needing mortgages (except BTL ones - a completely different market) so this is only of academic interest, but I'm intrigued to see that nothing much has changed since the 80s (bigger numbers, but much lower interest rates - same result).

I sympathise a great deal with young people trying to buy their first house - but it was exactly the same 30 years ago.
musicman
18 Sep 17 #50
Got this same deal last month with Barclays. Great rate :thumbsup:
jameswalker457
18 Sep 17 #49
Yeah I think there's been a faff here!
BigG93
18 Sep 17 #48
Not sure the problem here ... just brought my first house for 186k with a 5% deposit cost me £13k all together for everything and pay 960 a month. Not much you can do rates wise if you want to own your home. Paying a stupid amount of interest for a few years is better than paying 800 a month rent on a home that’s not yours.
duncanb1973
18 Sep 17 #47
Or 1.99 with no fee
foxylady7172000
18 Sep 17 #46
Thanks for this, prompted me to enquire about changing our current variable rate mortgage with Santander to the 5 year fixed rate above, all done and dusted by telephone just now, saving £120.00 per month!!! :sunglasses:
ran123ran
18 Sep 17 #45
I cant find this on santander website......could it have been withdrawn?
madbull
18 Sep 17 #44
Depending on how big your mortgage is, HSBC might be a better deal. 1.59% with 60%LTV, booking fee £999 or £749 if you have an Advance or Premier account. If you didn't have one of those accounts you could just open one. I know that with the advance all you need to do is pay in £1750 a month to keep it.

hsbc.co.uk/1/2…000


hsbc.co.uk/1/2…727

Plus if you don't have an Advance account you could switch as per this deal and get £200

hotukdeals.com/dea…477
suarez777
18 Sep 17 #43
New regulation needs to come in to reduce/cap mortgage penalty fees when switching mortgage.

Reducing mortgage rates is in the interest of the government as it affects people disposble income significantly
HotUKDealSeeker
18 Sep 17 #42
Don't you get 1% cash back on Santander mortgages with their 123 account?
lilacjumper
18 Sep 17 #41
I just rang as an existing customer currently on LTV of 63%, based on purchase price of 5 years ago. Since then the property value has notionally risen by about 15-20% which would bring my LTV down below 60%. Mohammed at the call centre said that although it was open to existing customers I was not on a high enough banding to qualify for that rate. The best deal I could get would be 1.89% with a £999 product fee. That's despite having 30K in their current account and an ISA with them. So be aware that not everybody currently with Santander will qualify for this. I'll either try again through London and Country to get it or I'll sack them off in favour of First Direct.
Jawz
18 Sep 17 #19
First time buyer here. These LTV are scary.
Being at an age where a house I buy will have to be one for almost rest of my life. It's scary how much I am going to need as a deposit.

Seems that 25% is what's needed for any decent rate. Avg house being around £250k that's 62.5k plus fees etch. Prob need to save around 65-67k and that's without costing for furnishings.
Gonna go cry and by myself another lotto ticket ;o(
othen to Jawz
18 Sep 17 #33
I sympathise with your plight, but to be candid there is nothing new. When I bought my first house in the 1980s the average cost was probably something around £30,000, now it is probably approaching £200,000, but 40 years ago interest rates were 12-15% and the money supply was very tight so in practice one needed a large deposit to get a mortgage at all. Obviously lenders will give the best rates to the lowest risk borrowers (that is what I would do if I was lending money), which means those with good and reliable salaries as well as large deposits or considerable equity in their existing properties.

You obviously won't need to save £65,000 as the deposit for your first place, but neither will you qualify for a loan at under 2% - such is the way of the world, it gets better as you get older and accumulate more capital.
Britneyfan to Jawz
18 Sep 17 #40
its not really a first time buyers rate. Start at 10-20% if you can, then as the prices go up your LTV will. Mines rocketed in the past few years. Maybe also try to find something a little smaller to start and move down the line when you can afford more. I got what I could afford and the time but now debating In the next few years that what Ive payed in and the equity, I could actually move up in the world now fairly substantially.
Go buy a garage for now, might double in a few years :smile:
Cheapasnowt
18 Sep 17 #39
Now if only you could get reasonable deals like this with no product fees on buy to let mortgages
SavB
18 Sep 17 #20
This is great and all, but at 60% LTV and the average house price in London being 650k, that implies you need a 260k deposit. Who in the heck has that?? What a sorry state of affairs the housing market has become.
othen to SavB
18 Sep 17 #27
I see your point, but I don't think this is anything new, the numbers are just different. When I bought my first house in the 1980s houses could still be had in London for £125,000, but interest rates were 12-15%, the capital supply was limited and in practice one needed a large deposit to get a mortgage at all.
Youngsyr to SavB
18 Sep 17 #35
People selling up after having benefited from the housing market price rises over the past 10 years? Not everyone is a first time buyer.
Britneyfan to SavB
18 Sep 17 #36
60% LTV is not really a first time buyers Mortgage. And London well.... TBH from where I live anywhere 'down south' would be a no go. 650k would be a stately house around here. :grin:
upset.brown.pant to SavB
18 Sep 17 #38
people that already have a mortgage that have paid off a chunk and seen the property's value rise. which is a huge chunk of homeowners
gsusx
18 Sep 17 #30
I am locked in with Santander till 2019. Do you think they would let me upgrade early. Also if I wanted to move house would they hit me with any penalties etc. Apologies really don't know as much as I should about mortgages.
Youngsyr to gsusx
18 Sep 17 #37
You need to read your mortgage agreement! Failing that, ring Santander and have them explain it to you.
m1chaels
18 Sep 17 #5
So my current Santander fix will end in 12 months - odds of them letting me switch to this one so that I am locked in with them again rather than looking for the best deal on the market = zero.

Which comes as a warning, think very carefully about early repyment charges if taking a Santander fixed rate.
Youngsyr to m1chaels
18 Sep 17 #34
At 1.79% the rates can't go much lower, so I personally wouldn't hesitate at fixing at this rate for 5 years, especially with a weak government and Brexit on the horizon.
KFH2009
18 Sep 17 #17
Is this for existing customers? I believe we can search for a new deal from 3rd October. We fixed part of ours a few months ago at 2.09% so this would be great for the 2nd part of the mortgage!
mywife to KFH2009
18 Sep 17 #26
Just spoken to Santander myself as an existing mortgage customer of theirs on SVR looking to move to a new product. The offer of 1.79% for 5yrs with no fee is only available to those moving their mortgage from another provider to Santander.

The lowest I was offered (currently having a below 60% LTV) is 2.09% for 3 or 5yrs with no fee, or a 2yr fixed @ 1.59%.
othen to mywife
18 Sep 17 #28
Good comment, that information will be useful to people.
gsusx to mywife
18 Sep 17 #32
Nice work, not good news for me though. :disappointed:
krizw
18 Sep 17 #31
Overpayments? can't find then information.


Found it 10%
vithya
18 Sep 17 #29
Is there any charge for over payment?
Virtual.Insanity
18 Sep 17 #15
Deal doesn't exist. £999 fee. Also with 5% ERC + legal fees. First deal posted by 2Good2Btrue, hmm....
zippypants to Virtual.Insanity
18 Sep 17 #21
So Instead of Fake news .. Now it's Fake deals
gary333 to Virtual.Insanity
18 Sep 17 #22
Press the 'Show More' button. It is there. You have probably not put a figure in that is equal of less than 60% of property value.
Virtual.Insanity to gary333
18 Sep 17 #23
Bang to rights. I had put in the 60% LTV but hadn't hit show more. Why would anyone choose the one with £999 product fee then?
Apologies to 2Good2BTrue!
othen to Virtual.Insanity
18 Sep 17 #25
I think you are mistaken, I don't need a mortgage, but I was curious so I just had a look and easily found the product (under moving your mortgage to Santander). There are a number of similar products listed, some with and some without application fees - I suspect the best of these are reserved for the lowest risk customers (with good and secure incomes and considerable capital).
3ak
18 Sep 17 #3
These rates just getting better and better heh I thought my 2.23% was good one year ago so I'm fixed for 5 years - could have saved 100£ a month with this.

Good luck all :smile:
donslibi to 3ak
18 Sep 17 #24
Could have saved £100pm... how much interest are you paying pm?!!
chutuk
18 Sep 17 #8
Good find! I was looking at this one which may work out a better deal for some as they're valid with an 80% LTV. 1.55% fixed for 5 years but with a 'reasonable' £499 fee. Just make sure you switch the deal ends though as their SVR is pretty terrible.

Still got 1 year left on mine before I can switch though :-(

leedsbuildingsociety.co.uk/mor…tv/
m1chaels to chutuk
18 Sep 17 #18
Discount not fix
legend8888
18 Sep 17 #16
It says "Product fee £999" when I've looked, not sure if this is for everyone?
itr786
18 Sep 17 #14
Sorry where exactly is this deal to be seen!?
vraxxos
18 Sep 17 #12
Question for the smart folks.

If I had a mortgage that had 10 years left, but it was very small and where I could easily pay twice as much, could I sign up to this offer and have Santander set the term of the mortgage to 5 years so I could enjoy the fixed rate term?
gary333 to vraxxos
18 Sep 17 #13
Minimum mortgage amount is £25,000 for this product. If you have less than this outstanding you will be unable to move to this product.
brettytopbanana
18 Sep 17 #11
I just switched mine from one Santander product to another which is fixed for two years at 1.49%
lianghe1984
18 Sep 17 #7
I could only find the one fixed 5 yrs at 1.79% with £999 product fee
the.porter to lianghe1984
18 Sep 17 #10
Same edit found it
Vistrix
18 Sep 17 #9
Amazing deal.

I just wish my LTV was at 60%...
cikki100
18 Sep 17 #1
Nice, the rates will rise soon, Nationwide already put up their rates for 5 year fixes.
morrig to cikki100
18 Sep 17 #6
Will be using a MIB soon (hopefully) and sod law decrees when we do it will go up, what with the jitters of interest hike being muted sending pound up . That's after years of nearly flat interest on savings.
jgw_blue
18 Sep 17 #4
Stonking deal!!!!!!
chrissyny
18 Sep 17 #2
heat!!!
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