Yorkshire BS: Two-year fixed mortgage 1.39%, £495 fee, £250 cashback, up to 60% LTV
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Yorkshire BS: Two-year fixed mortgage 1.39%, £495 fee, £250 cashback, up to 60% LTV

24
Found 29th May
I’m not usually a massive fan of cashback mortgages – they often hide an uncompetitive rate – but this deal from Yorkshire building society is actually pretty hot.

It offers:

  • A two-year fix at 1.39%
  • Available up to 60% loan-to-value (LTV) – i.e. so you need 40% equity or deposit
  • £495 fee
  • £250 cashback
  • Free valuation
  • Available to homebuyers and remortgagers

Why I like this deal
The £250 cashback brings the effective fee on this deal down to £245. That’s a lot lower than comparable two-year fixed deals – most two-year fixes at 1.3-something have a fee of £1,000 or more – Leeds building society’s two-year fix at 1.39% (i.e. the same rate as YBS) has a fee of £1,999! So £245 after cashback is a bargain.

How to compare mortgages
As always, it’s important to calculate the total cost of a mortgage deal. You can do this by adding together the total monthly payments over the fixed period (2 x 12 = 24 payments in this case) then adding any product fee minus any cashback.
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Top comments
M_z1 h, 57 m ago

Whats the point of 'cash back' if it doesn't either cover the fee? What …Whats the point of 'cash back' if it doesn't either cover the fee? What sort of an idiot do they think this will sway, and why are they bothering if its a decent deal already?


I must be an idiot as I dont see your issue. Is there some rule that cashback offers are supposed to cover the fee? Would NO cashback make you not feel like you are being treated like an idiot?
24 Comments
Whats the point of 'cash back' if it doesn't either cover the fee? What sort of an idiot do they think this will sway, and why are they bothering if its a decent deal already?
Sounds good. I would have considered this if i was at the end of my fixed term but got a year and half to go.
Voted hot! I personally think this is a good deal when compared to all other offers out there. Definitely the cheapest I've seen so far, thanks OP!
M_z1 h, 57 m ago

Whats the point of 'cash back' if it doesn't either cover the fee? What …Whats the point of 'cash back' if it doesn't either cover the fee? What sort of an idiot do they think this will sway, and why are they bothering if its a decent deal already?


I must be an idiot as I dont see your issue. Is there some rule that cashback offers are supposed to cover the fee? Would NO cashback make you not feel like you are being treated like an idiot?
Thanks for this deal. Just a question- do you pay legal fees with this deal as similar deal on their website has got free legal but no cashback. And that cost should also be considered cuz some lenders do provide free legal but others will make u pay.
tygar216 m ago

I must be an idiot as I dont see your issue. Is there some rule that …I must be an idiot as I dont see your issue. Is there some rule that cashback offers are supposed to cover the fee? Would NO cashback make you not feel like you are being treated like an idiot?


No need to take it personally. My point is simply that they could have offered the product with fees of £245 - but chose to have fees of £495 with cashback of £250. Why is that? Do they think this would sway potential customers? If that is the case then they must assume there are some proper idiots out there.
Read that as Yorkshire Bull S&#t 😄
5 year fix comes to an end in August, this seems like a good deal for me. But i can finish my mortgage in 10 years and hsbc who im with now are still offering a 10 year fix at 2.49% with no fees.
Still a good deal this but slightly concerned as to where rates could be at in 2 years time
M_z1 h, 43 m ago

No need to take it personally. My point is simply that they could have …No need to take it personally. My point is simply that they could have offered the product with fees of £245 - but chose to have fees of £495 with cashback of £250. Why is that? Do they think this would sway potential customers? If that is the case then they must assume there are some proper idiots out there.


Some lenders allow the fee to be incorporated into the mortgage. Compound interest will accrue on the fee over time therefore it's in their interest to charge a large fee as many people will put it on the mortgage and take the cash. The cashback is effectively a loan.
Smeeble55 m ago

Read that as Yorkshire Bull S&#t 😄


Me tooooo hahaha
M_z1 h, 56 m ago

No need to take it personally. My point is simply that they could have …No need to take it personally. My point is simply that they could have offered the product with fees of £245 - but chose to have fees of £495 with cashback of £250. Why is that? Do they think this would sway potential customers? If that is the case then they must assume there are some proper idiots out there.

Lots of people dont receive cashback at the end because theu forgot to claim or left contract early etc. And thats how company make money from offering cashback. Its very profitable
Edited by: "Zinagling" 29th May
I’ve been offered a 5 year fix at 1.94% - good deal?
I signed up with nationwide back in Feb, 5 year fixed at 1.99% with no product fee and £500 cash back which was paid into my account a month after completion. Personally I would say fix it for as long as u can now as the rates will start going up
bailey8743 m ago

I’ve been offered a 5 year fix at 1.94% - good deal?


From whom? Any product fee?
BS indeed
whisky_lover4 h, 33 m ago

From whom? Any product fee?


First Direct fee saver (no fees) 60% LTV. Great deal for someone looking to fix for 5 years @ 1.94%
Edited by: "meskispeskis" 30th May
Nightmare company to deal with. Pulled our low LTV, low salary multiple, mortgage offer at the last minute after an agreement in principle, apparently for no good reason. Was not possible to talk to anyone with any knowledge to discuss the details. All we could get was that the assessor had decided we could not have the mortgage and that was the end of it. Move had to be delayed while we arranged a mortgage elsewhere.
whisky_lover7 h, 52 m ago

From whom? Any product fee?


NatWest £995 fee (added to mortgage)
bailey873 h, 28 m ago

NatWest £995 fee (added to mortgage)


You have to do some maths to work out if its a good deal, and it depends on the size of the mortgage. I think a rule of thumb is that higher fees for a lower interest rate make more sense for a larger mortgage. If you have a smaller mortgage, you might be better off paying no fees but a higher interest rate. Also, when they add £1000 fees to the mortgage, then you'll obviously pay back more than £1000 over the term.
M_z5 h, 5 m ago

You have to do some maths to work out if its a good deal, and it depends …You have to do some maths to work out if its a good deal, and it depends on the size of the mortgage. I think a rule of thumb is that higher fees for a lower interest rate make more sense for a larger mortgage. If you have a smaller mortgage, you might be better off paying no fees but a higher interest rate. Also, when they add £1000 fees to the mortgage, then you'll obviously pay back more than £1000 over the term.


This is all good advice - the best deal for each individual depends very much on their mortgage amount as well as the rate/fee combo. I'd advise against adding the fee to the mortgage wherever possible - pay it separately upfront. Otherwise you're potentially paying interest on the fee for 25 years or whatever and it will cost you loads.
Anyone can advise on how much you have paid in legal fees when remortgaging? As far as I know there are three main costs to take into account when changing provider: product fee, valuation fee and legal. Some providers will cover some or even all of them, some will give you cashback, so comparing takes some time...
M_z7 h, 22 m ago

You have to do some maths to work out if its a good deal, and it depends …You have to do some maths to work out if its a good deal, and it depends on the size of the mortgage. I think a rule of thumb is that higher fees for a lower interest rate make more sense for a larger mortgage. If you have a smaller mortgage, you might be better off paying no fees but a higher interest rate. Also, when they add £1000 fees to the mortgage, then you'll obviously pay back more than £1000 over the term.


Two-year fixed rate would also imply you would be potentially be paying product fee in another two years for yet another deal
whisky_lover27 m ago

Two-year fixed rate would also imply you would be potentially be paying …Two-year fixed rate would also imply you would be potentially be paying product fee in another two years for yet another deal


Yes, getting the best deal every two years could end up costing more than getting an OK deal and just sticking with it for ten years...
It’s the hidden costs that disappoint with this offer. On face-value this is a competitive mortgage, but after completing an ‘application in principal’ my wife and I soon found that there are a lot of additional costs involved, that are not clearly stated. I’ll update this if I am wrong, but if the additional fees are what they appeared to be last night, our application will be shelved.
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