Santander for Intermediaries has launched an 18-month fixed rate mortgage priced at 0.99%.
At the end of the fixed period, which expires on the 2 December 2018, the mortgage reverts to the bank’s 4.49% standard variable rate. The overall cost for comparison is 4.10% APRC representative.
The 0.99% rate has a £1,499 arrangement fee and 3% early repayment charges until 2 May 2022. Applicants will need a 40% deposit to qualify and the maximum loan is £1 million. Interest-only is available to
Aaron Strutt, product director at Trinity Financial, says: “Most lenders offer two, three, five and ten year fixes, it is unusual to see an 18-month fixed rate. Interest-only is available to certain clients.
“If you are looking for a short-term rate then it is a good option, but if you are planning to stay in the property it will probably make more sense to lock into a longer term fix.”
After the 18-month period Santander will potentially provide another rate through its product transfer system although if rates are higher in two-years times it maybe more expensive.
Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate until 02/12/2018 at 1.89% and then on a variable rate of 4.49% for the remaining 23 years, would require 21 monthly repayments of £941.05 followed by 279 monthly repayments of £1,355.29. The total amount repayable would be £397,887.96 made up of the loan amount, plus interest (£147,887.96) and fees of £999. The overall cost for comparison is 4.10% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
To secure a fixed rate mortgage call Trinity Financial on 020 7016 0790.