Yorkshire building society mortgage - 2 year fixed
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Yorkshire building society mortgage - 2 year fixed

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Found 15th Mar
We’re coming close to the end of our mortgage deal and are semi-fortunate enough to overpay our mortgage by about £1000 a month. We’re looking for a new deal.

Whilst scouting around at deals i found this at yorkshire building society - which looks a decent deal to me - for those with a decent LTV requirement ( so not for everyone... )

In my example we have around a 40% LTV need and this mortgage offers 99.9% overpayments in any one year (of course this shouldnt be done in year one..!).

Fees of £495 (+£95) - 1.54% rate (which barclays premier can’t beat...)

This looks a good offer for those who do overpay their mortgage by significant amounts.

Thoughts on it appreciated - or alternatives that may be available.
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I'm weirdly excited by mortgage rates...overpaying my mortgage has become pretty much an obsession for me...sad though it is. (Single, no kids or responsibilities, so getting it out of the way while I can)

On track to wipe my £120k mortgage next year after only 5 years... 7 years ago I only had about 2 grand in the bank.

It all started with a spreadsheet where I was like "How have I spent £100 in a SPAR in a week?!" - Sites like this certainly help to free up money for overpayments!
iamprobably22 m ago

Yeah - i know what you mean. We started about 3 years ago when we …Yeah - i know what you mean. We started about 3 years ago when we crunched some numbers and realised that overpaying it by as much as we could it’d mean the wife can retire a few years earlier.Our social life took a hit (!) - but it’ll be worth it in the end. Should hopefully have it paid off in 6 years - then we can relax a bit! Got to fit a lot of boilers to get it paid off quicker than that... lol


dont look at yourself as semi-fortunate at all please OP, its obviously hard work and sacrifice
Fair play, I don't even pay 1k a month let alone overpay by that much!
iamprobably14 m ago

Yeah - i know what you mean. We started about 3 years ago when we …Yeah - i know what you mean. We started about 3 years ago when we crunched some numbers and realised that overpaying it by as much as we could it’d mean the wife can retire a few years earlier.Our social life took a hit (!) - but it’ll be worth it in the end. Should hopefully have it paid off in 6 years - then we can relax a bit! Got to fit a lot of boilers to get it paid off quicker than that... lol


Happy wife, happy life!
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Fair play, I don't even pay 1k a month let alone overpay by that much!
Original Poster
tek-monkey10 m ago

Fair play, I don't even pay 1k a month let alone overpay by that much!


Yeah - i know what you mean. We started about 3 years ago when we crunched some numbers and realised that overpaying it by as much as we could it’d mean the wife can retire a few years earlier.

Our social life took a hit (!) - but it’ll be worth it in the end. Should hopefully have it paid off in 6 years - then we can relax a bit! Got to fit a lot of boilers to get it paid off quicker than that... lol
iamprobably14 m ago

Yeah - i know what you mean. We started about 3 years ago when we …Yeah - i know what you mean. We started about 3 years ago when we crunched some numbers and realised that overpaying it by as much as we could it’d mean the wife can retire a few years earlier.Our social life took a hit (!) - but it’ll be worth it in the end. Should hopefully have it paid off in 6 years - then we can relax a bit! Got to fit a lot of boilers to get it paid off quicker than that... lol


Happy wife, happy life!
iamprobably22 m ago

Yeah - i know what you mean. We started about 3 years ago when we …Yeah - i know what you mean. We started about 3 years ago when we crunched some numbers and realised that overpaying it by as much as we could it’d mean the wife can retire a few years earlier.Our social life took a hit (!) - but it’ll be worth it in the end. Should hopefully have it paid off in 6 years - then we can relax a bit! Got to fit a lot of boilers to get it paid off quicker than that... lol


dont look at yourself as semi-fortunate at all please OP, its obviously hard work and sacrifice
Good deal but don't forget the product fee of £495.

Great that you can have pretty much unlimited overpayments.
Edited by: "JPS" 15th Mar
What's the max LTV?
Original Poster
teerex1 m ago

What's the max LTV?


65%
It worth overpaying if you can else you end up frittering away any spare cash and have nothing to show for it.
We used to overpay before we had kids....no chance now.
ran123ran25 m ago

It worth overpaying if you can else you end up frittering away any spare …It worth overpaying if you can else you end up frittering away any spare cash and have nothing to show for it.We used to overpay before we had kids....no chance now.


Same here. Not over paid or put any money into an ISA since the kids came along.
In fact had to up our years terms to be able to afford to have smaller payments to afford childcare.
Hopefully once they are both at school we may be able to revert back down a few years.
I'm weirdly excited by mortgage rates...overpaying my mortgage has become pretty much an obsession for me...sad though it is. (Single, no kids or responsibilities, so getting it out of the way while I can)

On track to wipe my £120k mortgage next year after only 5 years... 7 years ago I only had about 2 grand in the bank.

It all started with a spreadsheet where I was like "How have I spent £100 in a SPAR in a week?!" - Sites like this certainly help to free up money for overpayments!
good on you OP. being mortgage free is a dream but the wife refuses to move out of London. logged into the mortgage account this morning only another 249000 to go
Original Poster
Magurdrac28 m ago

I'm weirdly excited by mortgage rates...overpaying my mortgage has become …I'm weirdly excited by mortgage rates...overpaying my mortgage has become pretty much an obsession for me...sad though it is. (Single, no kids or responsibilities, so getting it out of the way while I can)On track to wipe my £120k mortgage next year after only 5 years... 7 years ago I only had about 2 grand in the bank.It all started with a spreadsheet where I was like "How have I spent £100 in a SPAR in a week?!" - Sites like this certainly help to free up money for overpayments!


Thats pretty much exactly how we started! Sold our petrol guzzler and bought a nissan leaf (second hand..) - £200 a month saved pretty much. A couple of meals out a month at £100 a pop - stopped. Realising i spent £3k a year watching a football team home and away... stopped. Buying random clothes because ‘they’re on sale’ ... it really adds up. So basically we sit at home looking at mortgage statements and playing with the kids - rather than rocking out at gigs and travelling round thailand.

Oh how i miss those days

(Side note - anyone else going to lost evening 2 at the roundhouse..? Can’t wait!)
Original Poster
discozohan16 m ago

good on you OP. being mortgage free is a dream but the wife refuses to …good on you OP. being mortgage free is a dream but the wife refuses to move out of London. logged into the mortgage account this morning only another 249000 to go


I owe almost exactly half of that... don’t think we could afford to live in london - i don’t know how people do it on a ‘normal’ wage. Mad isn’t it.

Had a family member who bought a house in london - sold 5 years later and with the profit they bought a place in wales with about 2 acres...i think they did it the right way round. Good luck mate - those years will fly by!
any views on HSBC 3 year fixed 1.84% and no product fees and overpayments upto 10% of capital left pay each year?
It's weird reading the stories on here, I am the same £120k mortgage cleared after 10 years using a Yorkshire offset product. It does become obsessive seeing each month the interest paid getting less and the capital getting smaller with a bigger chunk of the payment being used to pay capital. The weird thing was I said at the start I wanted it cleared in 7 years but when seven years neared and interest was down to less £100 a year I was quite happy to let it run knowing I was paying so little in interest and the fact I could of cleared it at any point with the bulk paid off. Bit of an anti climax that last payment.
Original Poster
techsavvy22 m ago

any views on HSBC 3 year fixed 1.84% and no product fees and overpayments …any views on HSBC 3 year fixed 1.84% and no product fees and overpayments upto 10% of capital left pay each year?


Looks good to me mate.
iamprobably57 m ago

Thats pretty much exactly how we started! Sold our petrol guzzler and …Thats pretty much exactly how we started! Sold our petrol guzzler and bought a nissan leaf (second hand..) - £200 a month saved pretty much. A couple of meals out a month at £100 a pop - stopped. Realising i spent £3k a year watching a football team home and away... stopped. Buying random clothes because ‘they’re on sale’ ... it really adds up. So basically we sit at home looking at mortgage statements and playing with the kids - rather than rocking out at gigs and travelling round thailand. Oh how i miss those days (Side note - anyone else going to lost evening 2 at the roundhouse..? Can’t wait!)


Wow that was a bit of a segue! But if I'm around London I will be there (was there last year).
Magurdrac5 h, 34 m ago

I'm weirdly excited by mortgage rates...overpaying my mortgage has become …I'm weirdly excited by mortgage rates...overpaying my mortgage has become pretty much an obsession for me...sad though it is. (Single, no kids or responsibilities, so getting it out of the way while I can)On track to wipe my £120k mortgage next year after only 5 years... 7 years ago I only had about 2 grand in the bank.It all started with a spreadsheet where I was like "How have I spent £100 in a SPAR in a week?!" - Sites like this certainly help to free up money for overpayments!


You are paying off approx 2k each month?
High level 2k x 12 mnths x 5 years is 120k.?
Magurdrac16 h, 0 m ago

I'm weirdly excited by mortgage rates...overpaying my mortgage has become …I'm weirdly excited by mortgage rates...overpaying my mortgage has become pretty much an obsession for me...sad though it is. (Single, no kids or responsibilities, so getting it out of the way while I can)On track to wipe my £120k mortgage next year after only 5 years... 7 years ago I only had about 2 grand in the bank.It all started with a spreadsheet where I was like "How have I spent £100 in a SPAR in a week?!" - Sites like this certainly help to free up money for overpayments!


Sorry to be a pain, but can you give an example of how you set out the spreadsheet or any templates used?
ran123ran16 h, 25 m ago

You are paying off approx 2k each month?High level 2k x 12 mnths x 5 years …You are paying off approx 2k each month?High level 2k x 12 mnths x 5 years is 120k.?


Yeah, in that ballpark - I've been letting my spare room out to a friend and getting the maximum tax-free income from doing so, which has been a big help... and another advantage of being single...for now! =)
Might not be as good for overpaying, but my new Natwest mortgage is on 1.48% with £745 fees. So quite comparable, but they do lend a higher multiple of your income.

Each to their own, but I certainly wouldn't overpay on anything <2%, best to save the extra elsewhere until rates increase.
iamprobably15th Mar

Yeah - i know what you mean. We started about 3 years ago when we …Yeah - i know what you mean. We started about 3 years ago when we crunched some numbers and realised that overpaying it by as much as we could it’d mean the wife can retire a few years earlier.Our social life took a hit (!) - but it’ll be worth it in the end. Should hopefully have it paid off in 6 years - then we can relax a bit! Got to fit a lot of boilers to get it paid off quicker than that... lol


overpaying best thing we ever did, only got 15mths left on ours - paying off 8years early. would have been much earlier but we like a good holiday once a year.
Rockboy2476 h, 24 m ago

Sorry to be a pain, but can you give an example of how you set out the …Sorry to be a pain, but can you give an example of how you set out the spreadsheet or any templates used?




Not a pain at all - I started by putting literally everything I spent as an itemised line on a spreadsheet, with a total at the bottom.

This sounds very labour-intensive, of course, and resulted in a bit of a chaotic spreadsheet, so I then grouped them into common themes - groceries, entertainment, household bills etc. The idea being that each month, the spreadsheet simplifies, my outgoings reduce, and eventually I didn't need the spreadsheet at all, once I was confident that I'd eliminated unnecessary costs and developed good spending habits.

Things like household bills were pretty constant and on direct debit, so I could group them all into a single figure, after I'd made sure to make the most of any options to switch to a better tariff, had smart meters installed, change broadband suppliers, cancelled the sky package I wasn't really using, etc.

I spotted certain items I was buying fairly regularly, like toilet rolls, razors etc, and realised that in the longer term, obviously it's better to bulk buy 24+ toilet rolls, and buy an entire shelf full of the brand of razors I use when they're on offer (after a while, you notice what the "cheapest" price tends to be for a given item). - Cue weird looks from the checkout assistant when you buy 20 packets of razors!

I experimented with the cheaper brands of pretty much everything I bought regularly - obviously there were some where I felt that they weren't very nice, so you don't want to compromise enjoyment / quality of life for the sake of a few pence here and there.

Living in Manchester City Centre, I'm fortunate that I can walk everywhere, and just get a train or an uber when necessary, saving a fortune in that area. I can also rent my car parking space out for an additional £80 pcm on top of the tax-free rental income from having a lodger.

Smaller, simple things like Netflix allowed 2 simultaneous users, so instead of paying the whole amount, I now split that with another of my single friends (a few quid saved) - a few quid multiplied by numerous monthly changes soon adds up.

I'm not sure if that answers your question, but feel free to ask me anything else
Its a bit of a myth to just desire to overpay your mortgage. If you're on a low rate like this, you could actually make more with savings if you're smart with it.

I've got £30k in banks with an average interest rate of 2.9%. My mortgage rate is 1.85%. So actually I'd be losing money by paying it off early.

All the ethos of saving is of course correct (to a degree, don't waste your life meantime for a future that you might not even have) but just blindly over paying isn't always the answer.
One other advantage with Offset Mortgages is you can pull funds back out if needed or should an opportunity arise. I have one which is set to run for full term despite being fully offset. Means if I do want to use the funds I can easily do so. Worth bearing in mind when you choose your mortgage.
First Direct do a decent tracker offset mortgage with similar LTV.

Prob works out better (? more tax efficient) for people who have thousands of cash sitting under the mattress, which you obviously have (referring to the OP).

Thanks and kindest regards.
Surely it's better to fix for the next few years and overpaying what you're allowed to by standing order, in the event of funds being short you can stop overpayment, better than formally commiting to shorten the term with your lender. The money saving expert website has an overpayment calculator that will easily show how many years can be removed by overpayment. Would the near 3% earned on savings only be equal to inflation? I have heard it is usually better to service debt with savings rather than pay interest. Halifax 5 year fix over the last three months been 2.49%,2.59%,2.74%. I can't see this trend reversing.
techsavvy23 h, 56 m ago

any views on HSBC 3 year fixed 1.84% and no product fees and overpayments …any views on HSBC 3 year fixed 1.84% and no product fees and overpayments upto 10% of capital left pay each year?


I got this just before Christmas, it was the best rate at the time on the defacto tables. Lucky enough to get them free as work pays a subscription. If you’re an advance customer they half the fee too!
honeymonster862 h, 36 m ago

Its a bit of a myth to just desire to overpay your mortgage. If you're on …Its a bit of a myth to just desire to overpay your mortgage. If you're on a low rate like this, you could actually make more with savings if you're smart with it. I've got £30k in banks with an average interest rate of 2.9%. My mortgage rate is 1.85%. So actually I'd be losing money by paying it off early.All the ethos of saving is of course correct (to a degree, don't waste your life meantime for a future that you might not even have) but just blindly over paying isn't always the answer.


Exactly, even better if you invest the savings into property in the right areas. Although it depends on your circumstances and your appetite to risk / debt.
Edited by: "royals" 16th Mar
honeymonster862 h, 33 m ago

Its a bit of a myth to just desire to overpay your mortgage. If you're on …Its a bit of a myth to just desire to overpay your mortgage. If you're on a low rate like this, you could actually make more with savings if you're smart with it. I've got £30k in banks with an average interest rate of 2.9%. My mortgage rate is 1.85%. So actually I'd be losing money by paying it off early.



Yeah, I suppose it depends on the longer term aims of each individual.

From my perspective, the value of property in my area has increased by around 8% per year over the last 3 years, and I intend to purchase another property after this - with low mortgage rates and lower prices than if I were to wait another 3 years of (potentially) 8% annual appreciation on such properties.

£30,000 x 2.9% compound over 3 years = £32,686 - a £2,686 increase

£150,000 property purchased 3 years later = (potentially) £188,956 - a £38,956 additional cost (I could of course invest in other properties now, but I am working 60 hour weeks at the moment, and I don't feel I could cope with anything else!)

That's my reasoning behind paying off my mortgage early at all vs letting the mortgage run full term.

My decision to choose this regular over-payment route instead of the alternative method of saving the money up and then lump sum over-paying, is certainly linked to emotion - largely a reduction of temptation to spend the money on other things, but also helps to motivate me toward financial independence if I treat it like a challenge
Edited by: "Magurdrac" 16th Mar
Surely it would be better to grab one of the many cheaper two years fix’s and lower the term. Then make sure any remaining overpayments will come in at less than 10%? I wish I could afford £1000 overpayment.
Original Poster
honeymonster864 h, 58 m ago

Its a bit of a myth to just desire to overpay your mortgage. If you're on …Its a bit of a myth to just desire to overpay your mortgage. If you're on a low rate like this, you could actually make more with savings if you're smart with it. I've got £30k in banks with an average interest rate of 2.9%. My mortgage rate is 1.85%. So actually I'd be losing money by paying it off early.All the ethos of saving is of course correct (to a degree, don't waste your life meantime for a future that you might not even have) but just blindly over paying isn't always the answer.


Can i ask where youre getting 3%...? Part of the reason we’re overpaying is because everywhere with that sort of rate wants to tie us in for 5+ years
Original Poster
firstofficer4 h, 51 m ago

First Direct do a decent tracker offset mortgage with similar LTV.Prob …First Direct do a decent tracker offset mortgage with similar LTV.Prob works out better (? more tax efficient) for people who have thousands of cash sitting under the mattress, which you obviously have (referring to the OP).Thanks and kindest regards.


Not at all mate. Wife earns good money - i earn very average money at the minute and only work p/t as and when i want (recent career change and kids have to limit my hours...) Got a ‘buffer’ account of about £20k earning about 1.5% - the rest is living in our means. If we bring in (say) £4k a month between us - £800 mortgage. £1k overpayment. £500 a week is to live on for bills and stuff - any spare goes into the buffer account at the end of each month.

I bet we earn an average amount between us.
Magurdrac15th Mar

I'm weirdly excited by mortgage rates...overpaying my mortgage has become …I'm weirdly excited by mortgage rates...overpaying my mortgage has become pretty much an obsession for me...sad though it is. (Single, no kids or responsibilities, so getting it out of the way while I can)On track to wipe my £120k mortgage next year after only 5 years... 7 years ago I only had about 2 grand in the bank.It all started with a spreadsheet where I was like "How have I spent £100 in a SPAR in a week?!" - Sites like this certainly help to free up money for overpayments!


Same.

Made a spreadsheet which has evolved into:

tracking and categorising all my daily bank transactions (very important for keeping grocery spending under control)

giving me a view on total direct debit amount (are my commitments getting out of hand? What can I afford?)

watching my standard pay amount Vs overtime amount (constantly battling to live within my standard pay amount)

difference in bank balance immediately prior to pay month to month (how much have I made or lost this month)
-----------------------
It's so empowering and I'm a dab hand at excel now, I'd urge anyone who has no specific overview on their finances to go down this route. When it's up and running it doesn't take long to manage week to week. I'm like a man possessed with my spending these days, it's almost like a game. Can't imagine ever worrying or guessing if I'm gonna make it to the end of the month, my spreadsheet spells it out, sometimes brutally. 😊
iamprobably4 h, 12 m ago

Can i ask where youre getting 3%...? Part of the reason we’re overpaying i …Can i ask where youre getting 3%...? Part of the reason we’re overpaying is because everywhere with that sort of rate wants to tie us in for 5+ years


33455222-gJsHh.jpg
It also a list at the bottom about flipping the money between the accounts.
Magurdrac15th Mar

I'm weirdly excited by mortgage rates...overpaying my mortgage has become …I'm weirdly excited by mortgage rates...overpaying my mortgage has become pretty much an obsession for me...sad though it is. (Single, no kids or responsibilities, so getting it out of the way while I can)On track to wipe my £120k mortgage next year after only 5 years... 7 years ago I only had about 2 grand in the bank.It all started with a spreadsheet where I was like "How have I spent £100 in a SPAR in a week?!" - Sites like this certainly help to free up money for overpayments!


Wouldn't it make sense to keep some of your cash in bank accounts at a greater return that your mortgage APR? Quite abit of faffing about but you see returns!
honeymonster8616th Mar

Its a bit of a myth to just desire to overpay your mortgage. If you're on …Its a bit of a myth to just desire to overpay your mortgage. If you're on a low rate like this, you could actually make more with savings if you're smart with it. I've got £30k in banks with an average interest rate of 2.9%. My mortgage rate is 1.85%. So actually I'd be losing money by paying it off early.All the ethos of saving is of course correct (to a degree, don't waste your life meantime for a future that you might not even have) but just blindly over paying isn't always the answer.


Is that a fixed rate? for how many years?
honeymonster8616th Mar

Its a bit of a myth to just desire to overpay your mortgage. If you're on …Its a bit of a myth to just desire to overpay your mortgage. If you're on a low rate like this, you could actually make more with savings if you're smart with it. I've got £30k in banks with an average interest rate of 2.9%. My mortgage rate is 1.85%. So actually I'd be losing money by paying it off early.All the ethos of saving is of course correct (to a degree, don't waste your life meantime for a future that you might not even have) but just blindly over paying isn't always the answer.

firstofficer16th Mar

First Direct do a decent tracker offset mortgage with similar LTV.Prob …First Direct do a decent tracker offset mortgage with similar LTV.Prob works out better (? more tax efficient) for people who have thousands of cash sitting under the mattress, which you obviously have (referring to the OP).Thanks and kindest regards.


The base rate is expected to go up, so i would be tempted to fix for 5 years atleast.
Edited by: "ran123ran" 18th Mar
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