Yorkshire Building Society cheapest mortgage deal goes on offer 0.89% - HotUKDeals
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Yorkshire Building Society cheapest mortgage deal goes on offer 0.89%

£0.00 @ Yorkshire Building Society
Just seen on sky news! Yorkshire Building Society 2 year discounted SVR with an initial rate of 0.89% variable (YBS Standard Variable Rate -3.85%) until 31/08/2019. Product fee: £1,495 Payable o… Read More
alev_ada Avatar
6d, 9h agoFound 6 days, 9 hours ago
Just seen on sky news! Yorkshire Building Society

2 year discounted SVR with an initial rate of 0.89% variable (YBS Standard Variable Rate -3.85%) until 31/08/2019.

Product fee: £1,495 Payable on application
Mortgage fee: £90 Payable on mortgage redemption.
Maximum Loan to Value (LTV) 65%
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alev_ada Avatar
6d, 9h agoFound 6 days, 9 hours ago
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4 Likes #1
Fixed for 2yrs, Max 65 LTV and £1495 upfront payment ..... not that great TBH.
1 Like #2
MAX LTV 65%
#3
On my mortgage of £120k the product fee bumps this up by 0.63% so about 1.50% overall.
Not as catchy then is it.
May be better for larger loans
5 Likes #4
Great for the Londoners in their million pound 1 bed flats though.
#5
Comment
fireman1
Great for the Londoners in their million pound 1 bed flats though.
.
With wheelie bins under the front lounge window and a front door that always seem to open outwards
#6
japes
Fixed for 2yrs, Max 65 LTV and £1495 upfront payment ..... not that great TBH.
This is *not* a 2 year fix - just to be clear!
2 Likes #7
It's a rubbish deal, especially if you put that fee onto the mortgage. Then 2 years later the discount ends and takes your -3.85% with it. This whole product is a teaser to sting you for 5% in 2 years, don't fall for it.
1 Like #8
It may be fine for some people with large mortgages but the £1.5k fee is a bit of killer if you have a small mortgage. Always work out the total cost over the term of the offer (or after) to figure out if it's good for you.
4 Likes #9
Big news being made of this today.. But that fee!!! Offsets against all the advantages.
1 Like #10
ScoTTyBEEE
It's a rubbish deal, especially if you put that fee onto the mortgage. Then 2 years later the discount ends and takes your -3.85% with it. This whole product is a teaser to sting you for 5% in 2 years, don't fall for it.

Yes and no - couldn't all 2 year deals be described in that way? They still suit some people, and presumably these people are fully aware that they will need to change mortgage again at the end of the term?

I think the issue with it is more that the £1,495 Payable on application needs to be properly taken into account over the two year term - and unless your mortgage is above a certain amount, this wont be the cheapest product for you.
#11
Do the banks know something we don't?

Edited By: david_wavid on Apr 21, 2017 12:35: Gram
#12
thank you X)
8 Likes #13
david_wavid
Do the banks know something we done?
Why, what have you done?
#14
It seems pretty much impossible to find a mortgage where you'll pay less over 2 years, at least according to the mortgage comparison calculator at MoneySavingExpert.com and their Best Buy tables.
http://www.moneysavingexpert.com/mortgages/compare-mortgage-rates
https://www.moneysavingexpert.com/mortgages/best-buys/

However, when you look at the mortgage debt remaining after 2 years (bottom graph on the comparison calculator) the story starts to change. In other words, while some other mortgages may have you paying more, they will also reduce your remaining debt by more than the difference (e.g. you pay £50 more over 2 years but your mortgage debt is reduced by £500 more, or whatever).

So there are clearly a lot of factors to look at when comparing alternatives.
2 Likes #15
STUPIDLY high product fee

not fixed, and only 2 years.......COLD
1 Like #16
Low rate high fee only any good for big mortgage low ltv
1 Like #17
Good deal anyone with a reasonable size mortgage. Just workout the total cost including (legal and other) fees over the 2 years and be prepared to remortgage at the end of the 2 year period. Doesn't look like the %rates are going anywhere quickly unless inflation rises rapidly.
#18
fireman1
Great for the Londoners in their million pound 1 bed flats though.

Not a flat, but the rest of the profile matches... I even have a small house for my bins to live in.

Even with a sizeable mortgage I struggle to see the sense of this, the fee is very prohibitive for the very short duration. Typically I still tend to go via an IFA and broker.
1 Like #19
fireman1
Great for the Londoners in their million pound 1 bed flats though.
Yeah because nobody else needs to save money on their mortgage?

As a whole, those in North England and Wales have the highest average outstanding LTV mortgages, at 60 per cent and 55 per cent respectively. The average in Britain is 48 per cent.
Much of central London has low LTV rates. This is because house prices have soared past pre-recession levels.

higher loan vs value is darker green!!

http://blog.savills.com/_images/housing-debt.png
Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-3438660/The-regions-biggest-mortgage-debt-revealed-Use-interactive-maps-town-city-compares.html#ixzz4esAe3K1U
#20
fireman1
Great for the Londoners in their million pound 1 bed flats though.
Who will probably have to apply through means other than branches if the imminent closure of my local ex-Chelsea BS branch is anything to go by.
1 Like #21
Ridiculous Product fee
1 Like #22
Their best fixed 2yr deal is 1.78% with no fee, the total fees are actually £1825 including valuation (not legal).

Which equates to ~£76/m over the life of the deal.

Therefore you'd need min ~£200k borrowed, on an appropriate LTV to benefit from this deal.
#23
And that's assuming the rate isn't hiked during those 2 years (it probably will be!). Just a ridiculous headline-grabber, this one. No doubt some will fall for it (I see a poster further up assuming it's a fixed rate, it isn't!).

Edited By: bellboys on Apr 21, 2017 11:08
1 Like #24
premierfella
fireman1
Great for the Londoners in their million pound 1 bed flats though.
Who will probably have to apply through means other than branches if the imminent closure of my local ex-Chelsea BS branch is anything to go by.
much faster online or by phone.
1 Like #25
awesome deal as after 2 years their rate in -3.85% according to the op, so they pay me!
#26
As a comparison have a look at atom bank which in my opinion is offering the best 2 and 5 years fixed rates. Only downside I can see is that you have to use one of their brokers.

Oops looks like they have just pulled the mortgage.

https://www.google.co.uk/amp/www.telegraph.co.uk/personal-banking/mortgages/best-ever-mortgage-offer-pulled-nine-days/amp/
#27
Not a patch on the Atom Bank one posted recently
#28
Yeah you guys may feel differently but on our mortgage (currently a fixed deal at 1.89%). We'd save £2610 per year. So the £1500 fee is minimal in comparison. And you can always choose to pay this bit off as extra. This deal (if we weren't fixed). Would save us give or take £3700 over 2 years. Or looking at that another way >10% reduction in monthly repayments. Amazing but we wouldn't want the risk of not being fixed at present (one baby and one on the way) so the current 3yr fix and the reassurance it brings suits better than a variable rate. If market stays the same you are quids in. If in 12m time the BOE BR is 1.5% this will get screwed.
#29
The_Hoff
fireman1
Great for the Londoners in their million pound 1 bed flats though.
Not a flat, but the rest of the profile matches... I even have a small house for my bins to live in.
Even with a sizeable mortgage I struggle to see the sense of this, the fee is very prohibitive for the very short duration. Typically I still tend to go via an IFA and broker.
"Fee is prohibitive" and "Use an IFA and a broker" seems a bit of an oxymoron :D
#30
JusticeForThe96
The_Hoff
fireman1
Great for the Londoners in their million pound 1 bed flats though.
Not a flat, but the rest of the profile matches... I even have a small house for my bins to live in.
Even with a sizeable mortgage I struggle to see the sense of this, the fee is very prohibitive for the very short duration. Typically I still tend to go via an IFA and broker.
"Fee is prohibitive" and "Use an IFA and a broker" seems a bit of an oxymoron :D

Guessing you've never used one?
#31
You're right .... makes this even worse. Standard variable rate can be raised anytime
#32
not a great deal unless your mortgage is in millions
#33
2 years
this deal is poor
#34
Paying £1500 quid every two years to avoid an SVR, seems ludicrous,
that's the reason most people I know have base rate trackers and are paying considerable over payments.
#35
The_Hoff
JusticeForThe96
The_Hoff
fireman1
Great for the Londoners in their million pound 1 bed flats though.
Not a flat, but the rest of the profile matches... I even have a small house for my bins to live in.
Even with a sizeable mortgage I struggle to see the sense of this, the fee is very prohibitive for the very short duration. Typically I still tend to go via an IFA and broker.
"Fee is prohibitive" and "Use an IFA and a broker" seems a bit of an oxymoron :D
Guessing you've never used one?
Not for a mortgage no. Not difficult to ascertain the best option for that. I do work in finance so I might have a slight advantage over Joe Public to be fair.

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