In this article I will discuss the new 0.99% fixed rate mortgage available from the TSB, and review how to get effective mortgage advice. As a mortgage broker working with home owners in Hitchin, I regularly help customers who are re-mortgaging and looking for the best fixed rate deal. If you are coming to the end of your mortgage deal, call our Hitchin mortgage advisors now on 0203 693 0544 or email us at info@fortunefinancial.co.uk.
TSB launch new mortgage product
The TSB recently launched a 0.99% two-year fixed rate mortgage. To qualify for this mortgage product, you have to be re-mortgaging and have 40% equity in your home, and it costs £1,495. Alternatively, you can reduce the cost to £995 by paying 1.14% interest, or pay no arrangement fee but 1.96% interest. If you are a homebuyer with a 40% deposit you will pay 1.09% on your mortgage, fixed for two years and the mortgage product costs £995 to arrange. A spokesman for the TSB said: ‘We’re pleased to be offering a really competitive rate which will help those looking to re-mortgage make the most of their money.’
Our Fortune Financial mortgage brokers can review all the fixed rate mortgage deals for you
In April 2021 Hinckley & Rugby Building Society launched a 0.99% variable rate mortgage for a two-year term, for anyone re-mortgaging with a 40% equity holding. Although the mortgage rate is guaranteed to be below their standard variable rate for a period, it is possible the mortgage lender will increase the rate on it. The TSB mortgage product is the best rate on a fixed rate product since 2017. It is really exciting for homeowners in and around Hitchin who are re-mortgaging because similar products were all pulled during the pandemic. If you want to re-mortgage and are looking for a fixed rate product, it could be worth considering. However, all the new TSB products are expensive to arrange, especially as they are only fixed for a two-year term. You can offset the arrangement fee by paying a lower initial charge, but then your monthly interest will increase. Other mortgage lenders such as Santander are offering slightly higher rates but lower arrangement fees. We recommend that you call our mortgage broking team on 0203 693 0544, so we can review your personal circumstances and compare all the mortgage products currently available and find the best one for you.
Why sign up for a fixed rate mortgage?
Remember, there are benefits to fixed rate mortgages. You will always know exactly how much your monthly mortgage payments will cost you so it is easier to plan your monthly outgoings. As your mortgage payments will remain the same throughout the two-year term you will be protected if the Bank of England raises interest rates. In March 2020 the Bank of England reduced base rates to a historic low of 0.1% and although there is talk about negative interest rates returning, we could equally see interest rates increase over the next two years. For anyone wanting to fix for longer, the TSB are also offering a five-year fixed product for re-mortgagers. They are charging 1.19% interest to fix your mortgage until 2026.
Call our Hitchin mortgage brokers for mortgage advice
The extension of the stamp duty holiday is encouraging many people to move house, so our Hitchin mortgage brokers are seeing lots of interest in the property market. We help anyone re-mortgaging, moving home, first-time buyers and buy to let investors. It is really encouraging that mortgage lenders such as TSB are offering such attractive fixed rates as it will really help anyone who is re-mortgaging and meets the criteria. It may also encourage other mortgage lenders to offer attractive re-mortgaging deals too. Funding rates remain low and the activity in the housing market since September 2020 has encouraged lenders to be competitive and provide good deals for customers.
Mark Seddon
Director of Fortune Financial and Mortgage Broker & Protection Adviser in Hitchin
