2 year 1.2% BoE tracker mortgage - Fee Free - Skipton Building Society
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2 year 1.2% BoE tracker mortgage - Fee Free - Skipton Building Society

30
Found 11th Oct
Hi!
Hopefully I've posted this correctly!
We are currently wanting to remortgage (have 60% LTV and are at the end of our term) and have been looking around at variable and fixed deals. We're debating over the following 3 rates:

Santander 5yr fixed at 1.79% fee free
Yorkshire 2yr fixed at 1.09% with £495 fee
Skipton 2yr BoE tracker at 1.2% fee free

My calcs (apologies) suggest the Skipton mortgage works out the least over a 2 year period (assuming the rates don't rise) and if they do by 0.25% each year, we will be paying an extra £660 over the 2 years (£360 more than we would with the Yorkshire fixed deal). Assuming they rise by 0.25% over the 2 years we will be paying an additional £432 over the 2 year period (only £57 more than taking the Yorkshire deal).

We're currently with the Skipton so sticking with them would be much easier, and we're debating taking the risk and sticking with a variable deal.

Does the Skipton deal sound good to you? It's not posted anywhere but its the best BoE tracker rate I can find?

Thanks in advance.

30 Comments

Yorkshire 2 year fixed looks preferable depending on your loan amount. Obviously personal opinion but I can't see rates not rising, even Carney said they will be going up in the short term.

ryan19857 m ago

Yorkshire 2 year fixed looks preferable depending on your loan amount. …Yorkshire 2 year fixed looks preferable depending on your loan amount. Obviously personal opinion but I can't see rates not rising, even Carney said they will be going up in the short term.


He’s been scaremongering for the last few years I don’t take him on

I'm in a similar position to you I went with the Santander option just for some peace of mind.

the.porter3 h, 0 m ago

He’s been scaremongering for the last few years I don’t take him on


They will go up. They’ve been too low for too long.

It’s almost certain they will go up in November by 0.25%

The market has priced in a rate rise and 2 year mortgages have increased in price. So within the next 2 years a rate rise is certain.

If you plan on moving soon, go for 2 year if not go with 5 year.

Original Poster

Thank you for the comments, I'm still unsure! Every time we've remortgaged in the past, everyone has always said "interest rates will rise imminently so it's best to fix", and they haven't. Hmm...

Original Poster

So I decided that the 2 year fixed was the best deal with the Yorkshire, got a mortgage in principle and then was told I needed to pay legal fees of £500 on top for a solicitor. Grr, back to my calcs...

HSBC is withdrawing some of its fixed deals today (I can foresee an interest rate rise there!). Bank of Ireland has already upped some of its fixed rates.

Carney is known for his bluffing about raising interest rates but it is looking like things are changing. if they do go up .25% the banks will push up the rate 1%













house price generally are going down significantly for the first time in years. where I am the average had dropped 5000 in the last three months from constant raises for over 5 years. that 5000 was how much they had gone up in a year so falling a lot quicker in comparison.













have a look at Zoopla and use the house prices tool. enter your town/city. you can set it to 3, 6, 12 months or more and also you can see for detached, semi detached, terraced and flats. it's quite an interesting tool.





zoopla.co.uk/?m=0
Edited by: "Kyouken" 12th Oct

steve7652 h, 14 m ago

HSBC is withdrawing some of its fixed deals today (I can foresee an …HSBC is withdrawing some of its fixed deals today (I can foresee an interest rate rise there!). Bank of Ireland has already upped some of its fixed rates.


Which products have they withdrawn?

Any thoughts on Bank of Ireland’s 5 year fixed rate at 2.18% (just increased by 0.13%) 75% LTV no arrangement fee or valuation with £400 cashback?. I realise there are slightly better % rates but cashback sort of offsets this All opinions welcome. Thanks.

ran123ran24 m ago

Which products have they withdrawn?


According to London & Country 1.99% 75 % LTV 5 year fixed rate deal is being withdrawn today. I haven’t confirmed this directly with HSBC though.

Original Poster

steve76516 m ago

Any thoughts on Bank of Ireland’s 5 year fixed rate at 2.18% (just i …Any thoughts on Bank of Ireland’s 5 year fixed rate at 2.18% (just increased by 0.13%) 75% LTV no arrangement fee or valuation with £400 cashback?. I realise there are slightly better % rates but cashback sort of offsets this All opinions welcome. Thanks.


It ends up being about £500 more than the santander deal overall (for me) so with the £400 cashback its actually not bad. If you dont have 60% LTV then its great. Assuming no hidden fee's.

Original Poster

Another quick question; do you think using an increase of 0.25% increase per year is realistic? Would it likely be more? Obviously nobody knows but I have very little knowledge on the subject. As assuming a rise of 0.5% over the 2 year period will only cost me another £100 and saves all the hassle of switching. Also if the rates dont rise as much as 0.5%, i'll likely be saving money.

Thanks in advance!

Still showing on HSBC website.....maybe they withdraw overnight.

Original Poster

Kyouken53 m ago

Carney is known for his bluffing about raising interest rates but it is …Carney is known for his bluffing about raising interest rates but it is looking like things are changing. if they do go up .25% the banks will push up the rate 1% house price generally are going down significantly for the first time in years. where I am the average had dropped 5000 in the last three months from constant raises for over 5 years. that 5000 was how much they had gone up in a year so falling a lot quicker in comparison. have a look at Zoopla and use the house prices tool. enter your town/city. you can set it to 3, 6, 12 months or more and also you can see for detached, semi detached, terraced and flats. it's quite an interesting tool. https://www.zoopla.co.uk/?m=0


So are you saying that if the UK interest rate goes up by 0.25%, the BoE rate will go up 1%? So me using +0.25% on my calcs is actually incorrect? If the skipton deal tracks the BoE rate +0.95%, a 0.25% increase in the UK interest rate, may mean my mortgage rate will go up to 1.95%? Sorry if i'm being stupid.

Ok. Quite possibly. I am aware that saying rates are being withdrawn could also be a tactic to get a deal secured ASAP though. Nevertheless I think rates will be increasing very soon (in my opinion).

Suspended

you'd be crazy not to go for the 5 year fix, it's dirt cheap and gives you 5 years' security

Ok. Thanks all. Only thing is if I choose to use the estate agents broker they want to charge me £195 so not quite so good a deal then. London & Country is fee free think but this would likely mean getting another Agreement in Principle.

Original Poster

steve7658 m ago

Ok. Thanks all. Only thing is if I choose to use the estate agents broker …Ok. Thanks all. Only thing is if I choose to use the estate agents broker they want to charge me £195 so not quite so good a deal then. London & Country is fee free think but this would likely mean getting another Agreement in Principle.

Why can't you go direct to Santander? And not use the estate agents?

Ok. Not sure if they are able to lend us enough? Will have to try their ‘how much can I borrow’ online calculator again.

Is it advisable to get an AIP first or can you go straight in for the application?

I can’t find the 1.79% deal for me. Only Santander 5 year deal I can see for me from is 1.84% with a £999 fee.

hfullwood3 h, 24 m ago

So are you saying that if the UK interest rate goes up by 0.25%, the BoE …So are you saying that if the UK interest rate goes up by 0.25%, the BoE rate will go up 1%? So me using +0.25% on my calcs is actually incorrect? If the skipton deal tracks the BoE rate +0.95%, a 0.25% increase in the UK interest rate, may mean my mortgage rate will go up to 1.95%? Sorry if i'm being stupid.











​ no if you are tied in with the fixed term tracker it will go up 0.25% as you would expect. sorry for the confusion.





























the 1% is what the banks would do for new products or for those on the standard variable rate. fixing for 5 to 10 years seems to be becoming more popular recently as some are expecting the interest rate to ramp up. if the boe rate went to 1% you could expect rates to be around 4%+. scary stuff really.
Edited by: "Kyouken" 12th Oct

hfullwood2 h, 20 m ago

So are you saying that if the UK interest rate goes up by 0.25%, the BoE …So are you saying that if the UK interest rate goes up by 0.25%, the BoE rate will go up 1%? So me using +0.25% on my calcs is actually incorrect? If the skipton deal tracks the BoE rate +0.95%, a 0.25% increase in the UK interest rate, may mean my mortgage rate will go up to 1.95%? Sorry if i'm being stupid.

The UK interest rate and the BOE rate is the same thing. UK interest rates are set by the BOE. Banks themselves set their standard variable rate which higher than the BOE rate and sometimes tracks but not always tracks it.

Original Poster

steve7655 h, 16 m ago

I can’t find the 1.79% deal for me. Only Santander 5 year deal I can see f …I can’t find the 1.79% deal for me. Only Santander 5 year deal I can see for me from is 1.84% with a £999 fee.

Agh I've just had a look and it's called a "remortgage special" so must just be for people remortgaging rather than 1st time buyers. Sorry.

Original Poster

Kyouken5 h, 14 m ago

​ no if you are tied in with the fixed term tracker it will go up 0.25% a … ​ no if you are tied in with the fixed term tracker it will go up 0.25% as you would expect. sorry for the confusion. the 1% is what the banks would do for new products or for those on the standard variable rate. fixing for 5 to 10 years seems to be becoming more popular recently as some are expecting the interest rate to ramp up. if the boe rate went to 1% you could expect rates to be around 4%+. scary stuff really.

Ok, thank you for clarifying. I can't imagine they'll go to that much in 2 years though?

Original Poster

mtuk14 h, 19 m ago

The UK interest rate and the BOE rate is the same thing. UK interest rates …The UK interest rate and the BOE rate is the same thing. UK interest rates are set by the BOE. Banks themselves set their standard variable rate which higher than the BOE rate and sometimes tracks but not always tracks it.

Thank you!
Edited by: "hfullwood" 13th Oct

Original Poster

steve7659 h, 50 m ago

I can’t find the 1.79% deal for me. Only Santander 5 year deal I can see f …I can’t find the 1.79% deal for me. Only Santander 5 year deal I can see for me from is 1.84% with a £999 fee.

hotukdeals.com/dea…019
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