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.
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Mortgage Deals - 5 Year Fixes
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- Lemon Quarter
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Re: Mortgage Deals - 5 Year Fixes
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/
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- Lemon Quarter
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Re: Mortgage Deals - 5 Year Fixes
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.
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Re: Mortgage Deals - 5 Year Fixes
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
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Re: Mortgage Deals - 5 Year Fixes
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.
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Re: Mortgage Deals - 5 Year Fixes
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.
Best wishes
Mark.
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