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Mortgage Deals - 5 Year Fixes

mortgage deals, ideas and discussion
ADrunkenMarcus
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Mortgage Deals - 5 Year Fixes

#439556

Postby ADrunkenMarcus » September 3rd, 2021, 8:44 pm

I went online with my current mortgage provider to check what sort of rate I might get if I renewed my 5 year fixed mortgage with the newest version of the product. I'd previously used their website calculator to get quotes as a 'transferring to us' new mortgage customer and the results included a 5 year fixed mortgage (an online deal) at 0.98%. Not that bad really! ;) Naively, I thought a sub-1% deal would be a once in a lifetime opportunity (yes, remembering to avoid one with 'product fees' as well and making sure to check the APRs).

I am within the four month period where I can change my existing deal and the provider offers the usual range of options - fixed, tracker, 2, 3, 5 and even 7 year periods. However, the cheapest 5 year fixed mortgage is showing at 1.34% - proportionally, that's a 37% greater interest rate than the one I had seen online.

I assume this is normal?!

Best wishes


Mark.

SteMiS
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Re: Mortgage Deals - 5 Year Fixes

#439689

Postby SteMiS » September 4th, 2021, 4:00 pm

ADrunkenMarcus wrote:I went online with my current mortgage provider to check what sort of rate I might get if I renewed my 5 year fixed mortgage with the newest version of the product. I'd previously used their website calculator to get quotes as a 'transferring to us' new mortgage customer and the results included a 5 year fixed mortgage (an online deal) at 0.98%. Not that bad really! ;) Naively, I thought a sub-1% deal would be a once in a lifetime opportunity (yes, remembering to avoid one with 'product fees' as well and making sure to check the APRs).

I am within the four month period where I can change my existing deal and the provider offers the usual range of options - fixed, tracker, 2, 3, 5 and even 7 year periods. However, the cheapest 5 year fixed mortgage is showing at 1.34% - proportionally, that's a 37% greater interest rate than the one I had seen online.

I assume this is normal?!

Best wishes


Mark.

Is this with Halifax?

https://www.which.co.uk/news/2021/08/fi ... or-longer/

ADrunkenMarcus
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Re: Mortgage Deals - 5 Year Fixes

#439691

Postby ADrunkenMarcus » September 4th, 2021, 4:06 pm



Thanks for your reply, much appreciated.

No, this is with Santander (they still used the Abbey National name as the legal entity when I took out the mortgage)! They did offer a 5 year fix with a lower rate than the 1.34% I quoted, but it had a product fee which would mean the overall cost would be higher.

The 0.98% 5 year fix offered to new customers on Santander's website had a 2% APR if I remember rightly.

Best wishes


Mark.

GoSeigen
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Re: Mortgage Deals - 5 Year Fixes

#439706

Postby GoSeigen » September 4th, 2021, 6:03 pm

ADrunkenMarcus wrote: However, the cheapest 5 year fixed mortgage is showing at 1.34% - proportionally, that's a 37% greater interest rate than the one I had seen online.

I assume this is normal?!


37%???

You mean 37bp surely?

GS

ADrunkenMarcus
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Re: Mortgage Deals - 5 Year Fixes

#439805

Postby ADrunkenMarcus » September 5th, 2021, 11:12 am

GoSeigen wrote:
ADrunkenMarcus wrote: However, the cheapest 5 year fixed mortgage is showing at 1.34% - proportionally, that's a 37% greater interest rate than the one I had seen online.

I assume this is normal?!


37%???

You mean 37bp surely?

GS


I mean that a 1.34% interest rate is, proportionally, 37% greater than a 0.98% one.

Best wishes


Mark.

ADrunkenMarcus
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Re: Mortgage Deals - 5 Year Fixes

#442635

Postby ADrunkenMarcus » September 15th, 2021, 9:18 pm

I ended up bagging a 5 year fix at 1.2%. Inflation is 3.2% this month so I am in no particular hurry to pay down the mortgage balance!

Best wishes


Mark.


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