Lowest rate resi mortgage at 60% LTV?

[ChimpMaster]

As per title, and of course easy for a seasoned contractor to obtain.

Some of the best rates available late last year have now been pulled so I'm wondering which lender is best for my requirements now.

[TheCyclingProgrammer]

I've been looking at a few rates too as our mortgage fixed deal is up for renewal in a couple of months. House prices have shot up around here and after 2 years we're looking at around 63% LTV having started at 83% LTV!

I've not looked that extensively as that's what I'm paying my broker for (Ben @ Power Mortgages) but I've looked at my existing lender's rates (Coventry BS). At this level they are offering 1.39% fixed for 2 years with a £999 fee or 1.79% without the product fee. I think the longer the fixed term, the more beneficial it is to pay the fee for the lower rate. I think we're going to consider a 5 year deal, which we can get at 1.85% with a £999 product fee.

https://www.coventrybuildingsociety....ts/residential

They will assess income for Ltd company directors with > 20% share based on the company net profit after corporation tax + salary which for most would be much better than net personal income, though not necessarily as high as those who base it on day rate.

[northernladuk]

Personally I'd be asking a broker. Just chasing the rate isn't always indicative of the best deal. Some of them have setup fees which make the mortgage more expensive over the initial period than a slightly higher one with no fees.

I've just renewed one with RBS and I indicated to them I intend to swap again as soon as the initial rate period is over which meant none of the absolute lowest ones worked out best because of the setup fees. I was stuck with RBS for one reason and another but definitely something to consider. Instead of wasting my time wading through them all I'd be getting a broker on the case.

[TheCyclingProgrammer]

Personally I'd be asking a broker. Just chasing the rate isn't always indicative of the best deal. Some of them have setup fees which make the mortgage more expensive over the initial period than a slightly higher one with no fees.

I've just renewed one with RBS and I indicated to them I intend to swap again as soon as the initial rate period is over which meant none of the absolute lowest ones worked out best because of the setup fees. I was stuck with RBS for one reason and another but definitely something to consider. Instead of wasting my time wading through them all I'd be getting a broker on the case.

Like I said above, I think the longer the fixed term, the more the lower rate/higher fee products work out.

For instance, on the 5 year deals I was looking at, based on repayments alone, the 2.05% rate would save us about £3.6k over 5 years in lower repayments (and interest of course) whereas the 1.85% rate would save us about £5.1k over the same period (£4.1k net of the £1k product fee) making it the better option.

You also need to take into account broker fees if you use one. We got a bargain for our initial mortgage and are still getting a discounted rate, but it all adds up if you're taking shorter terms.

[ChimpMaster]

Like I said above, I think the longer the fixed term, the more the lower rate/higher fee products work out.

For instance, on the 5 year deals I was looking at, based on repayments alone, the 2.05% rate would save us about £3.6k over 5 years in lower repayments (and interest of course) whereas the 1.85% rate would save us about £5.1k over the same period (£4.1k net of the £1k product fee) making it the better option.

You also need to take into account broker fees if you use one. We got a bargain for our initial mortgage and are still getting a discounted rate, but it all adds up if you're taking shorter terms.

Thanks CP. Coventry do an awesome offset mortgage at just 1.49% (at 50% LTV, 2 year fixed). I might take out more than I need and leave it in the offset account for future investments.