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

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.

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.

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.

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

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 2017Which 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.

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.

Thanks in advance!

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 2017Edited by:"hfullwood" 13th Oct 2017