2yr Fixed Rate Mortgage - 65% LTV, 1.18% [YBS launches lowest mortgage rate in 150 year] @ Yorkshire Building Society
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2yr Fixed Rate Mortgage - 65% LTV, 1.18% [YBS launches lowest mortgage rate in 150 year] @ Yorkshire Building Society

5
Found 2nd Mar 2015
YBS launches lowest mortgage rate in 150 years.

2yr Fixed Rate Mortgage - 65% LTV
Mortgages that let you rest easy, knowing that your interest rate will remain stable for a fixed length of time
This could be right for you if:

you're on a fixed budget
you like to plan your finances in advance
you want your interest rate to remain stable for a set time

What's the deal?

Yorkshire has launched a mortgage deal priced at a fixed 1.18% until April 30, 2017. It sits top of the best buy tables in the two-year fixed rate camp.

You can apply for the mortgage whether you are buying your first home, moving to a new home, or staying put and just looking for a better mortgage. In any case you will need at least a 35% deposit to qualify (that's a 65% loan to value).

The mortgage comes with a £1,369 product fee and a £130 application fee. Both can be added to the loan.

You can make penalty-free overpayments on the mortgage up to 10% of your remaining loan each year.
Who is it good for?

The rate on this deal may be super-low, but the fee is high. This means it would suit people with larger loans (after all, the bigger the debt, the more the rate matters). It also means the fee represents a lower proportion of the loan.

As the rate is fixed for two years, the deal would also suit those looking for some security of payments but in the shorter rather than longer term.
Any catches?

As we've mentioned, the most obvious catch is the high fees. Not only do they come to a combined total of nearly £1,500 but in two years' time, you may have to fork out more fees again if you switch again to another mortgage deal.
"There's no doubt this is a great rate but it will need to be weighed up against the fee"

At the end of the two years, the rate reverts to YBS' Standard Variable Rate (SVR). Currently this is pegged at 4.99% which is also relatively high. It's important then, to be ready to remortgage at the end of the two years. This is why:

If you borrow £100,000 over 25 years (and add the fees to the loan) the 1.18% mortgage would cost you £385 a month. Let the rate rise to 4.99%, and your repayments will ring in at £584 a month - that's £200 extra to live in the same house!

If you want to pay off your mortgage before the two years are up, you'll face an early repayment charge of 2% until April 30, 2016 and 1% the year following that.

Finally, really small loans won't qualify. To get the 1.18% rate, you'll need to borrow at least £25,001

5 Comments

useless...... what happens after 2 years? 5%?

Original Poster

ChickenDinner2000

useless...... what happens after 2 years? 5%?



look for another deal! unless your useless!

snappyfish

look for another deal! unless your useless!



"you're"

............

It looks like they also have 1.29% with £845 fee (and prob £130 application fee) which works out to be cheaper than 1.18%

Comment

ghunj

It looks like they also have 1.29% with £845 fee (and prob £130 a … It looks like they also have 1.29% with £845 fee (and prob £130 application fee) which works out to be cheaper than 1.18%



Depending on mortgage amount
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