Sainsbury’s Bank undercutting market with 1.80% five-year fix remortgage rate

by Aaron Strutt

Apr 19 2019

Sainsbury’s Bank for Intermediaries has launched an impressively low five-year fix remortgage rate available through a limited panel of brokers including Trinity Financial.

The bank's 1.80% mortgage is fixed until 30 June 2024. At the end of this period, it reverts to the lender's variable rate currently of 4.49%. The overall cost for comparison is 3.52% APRC representative.

The mortgage has a £1,495 arrangement fee, and applicants will need a 40% deposit to qualify. The rate is available for remortgages and the maximum loan size is £1 million.

Aaron Strutt, product director at Trinity Financial, says: "There are at least 17 lenders offering five-year fixes well below 2% and most of them will pay the property valuation and legal fees. Sainsbury’s five-year fix purchase rate is 0.04% more expensive than the 1.80% deal and it has a £995 arrangement fee.”

Early repayment charges apply for the full term although they are on a sliding scale. Borrowers can overpay up to 10% of the outstanding balance each year without charge. 

Representative example: A capital and interest mortgage of £250,000 payable over 25 years, initially on a 1.80% fixed rate until 30/06/2024 and then on a variable rate of 4.49% for the remaining 20 years, would require 61 monthly repayments of £1,035.46 followed by 239 monthly repayments of £1,317.20. The total amount repayable would be £379,593.86 made up of the loan amount, plus interest (£127,973.86) and £1,495 (product fee), £100 (final repayment charge), £25 (completion fee). The overall cost for comparison is 3.52% APRC representative.

The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.

Call Trinity Financial on 020 7016 0790 to secure a longer-term fixed rate