We just re-mortgaged from a lifetime tracker at 2.49% to a fixed tracker at 1.34% - our LTV is just below 20% now, but similar deals became available at LTVs of 60% and less. The rate, BTW, gives me extreme pleasure - inflation stands at 1.7%, and I think the rate could arguably go down - in the case of a hard Brexit (and the one we're seeing is not soft) or no deal, the Bank of England will start the money printing press and keep rates low, ie likely higher inflation and lower rates, both of which are fine for me.
We had £91,300 outstanding on a £200k loan, so going from LTV 50% to <20% is all due to the house doubling in value over the past 8.5 years since we bought it.
The 1.34% rate breaks down into 0.75% Band of England rate and the rest is HSBC's take. HSBC charged £999 and added that money onto the mortgage. After two years, that rate increases to 4.3% unless we remortgage again. Our monthly payments dropped from circa £550 to circa £426, and we plan to pay £1,800 a month, which should about halve the mortgage in those two years. That's about 50% of our disposable income after food and commute. We could probably kill it completely, but we need to build up some accessible savings to get us to the point when we can access our private pensions.
I'm just astonished at how we started paying off the same house for £1,200/month at a 90% mortgage 8.5 years ago, and since then, the low bank rates, house appreciation, and vigilance and smart decisions about the mortgage products have shaved off 70% from our payments. In our area, we'd pay £1,600 to rent the same type of property, so buying was the right choice. Plus, it's an attractive commuter town, very green and wealthy outside London, so I'm not even worried about a crash or not finding a buyer for it.
