Five year fixed mortgage rates reduced to record low of 1.29%

[THIS ARTICLE WAS PUBLISHED ON 12 APRIL 2017 AND NOT ALL THE RATES MENTIONED ARE NOW STILL AVAILABLE - PLEASE CALL OUR OFFICE FOR AN UPDATE]

One of our mortgage lenders have reduced their five-year fixed rates to the same rate as their two-year fixed rates for a limited time only:

  • 1.29% for 60% Loan to Value
  • 1.34% for 75% Loan to Value
  • 1.59% for 85% Loan to Value
  • 1.99% for 90% Loan to Value

This unprecedented move makes the five-year rates market leading in nearly every scenario versus any other lender in the UK.  In many cases, they are approximately 0.5% per year cheaper versus the nearest competitor with a like for like deal.  This can potentially save people hundreds of pounds each month.

If you'd like to discuss further give us a call today on 0207 427 6067 or email enquiries@bennisonbrown.co.uk.  There is no cost for us to discuss your circumstances.

  • For borrowers with a 40 per cent equity or deposit, you can get a rate of 1.29%, which is the lowest five-year fix ever seen, for a fee of £900
  • The next cheapest rate, of 1.75% from Barclays with a £999 fee, is significantly more expensive.

For example:
In the example above if the borrower had a £200,000 mortgage, with 40% equity in their house, the total cost over 5 years on a 20-year capital repayment basis would be £60,129 with Barclays.  For the same deal with the market leading provider would be £57,664.  This saves £2,465 over the five years which is just over £50 per month.

The lender has announced that it is an offer that will only be available for a short time as they look to grow their mortgage book.  We don’t know whether high street lenders will respond and lower their rates or whether this is a unique opportunity to tie into a five-year deal at the lowest rate of all time.  We are recommending borrowers contact us as soon as possible if they would like us to assess whether these deals are right for you.  The deals are available for anyone wanting to purchase a new home or remortgage their existing property.  

There is a downside to locking in to a five-year deal as if you ever wanted to repay the mortgage there would be a redemption penalty.  You will be charged 5% of the outstanding balance as a fee if you redeem in the first year, 4% in the second year, 3% in the third and fourth years and 2% in the final year.  The mortgage is fully portable if you move homes subject to you passing the credit criteria at the time of the move.  You are also able to pay up to 20% of the capital balance in a 12-month period.

Below is a summary of the deals available on a five-year fixed rate:

• 60% LTV with £900 fee: 1.29%

• 60% LTV without fee: 1.64%

• 75% LTV with £900 fee:1.34%

• 75% LTV without fee: 1.74%

• 80% LTV with £900 fee: 1.49%

• 80% LTV without fee: 1.89%

• 85% LTV with £900 fee: 1.59%

• 85% LTV without fee:1.99%

• 90% LTV with £900 fee: 1.99%

• 90% LTV without fee: 2.44%

Contact Bennison Brown on 0207 427 6067 to discuss your circumstances further or send us an email to enquiries@bennisonbrown.co.uk.

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