Yorkshire Bank - out of the frying pan.....

lobatt

I have a repayment mortgage with Yorkshire bank, had it with them for around 4 years now, moving from an endowment type mortgage that I had held elsewhere, Obviously I wanted certainty that my mortgage would be paid off completely at the end of the term, well after 4 years of paying and ten years to go and having paid without fail every month exactly what they asked, I have found out there will be a shortfall and in order to prevent this I should start paying more than £100 pounds a month on top!
Apparently I am the first to bring it to their attention at my local branch, but I was phoned back and told it affects many others across the country and they will be writing to those affected. Be warned! :mad:

CloudCuckooLand

Name of the exact product/arrangement might save confusion and undue panic among YB customers.

lobatt

For anyone interested it's tracker mortgage, and was discounted for the first two years, which was up until 2008. Now it just charges 1 percent above the b of e base rate, so currently 1 1/2 percent.

lobatt

also It is a fourteen year repayment mortgage taken out in 2006 on a fixed term of 14 years, this shortfall should simply not have happened. Still waiting on letter from the bank to explain things.

VIGILANT22

Quote: It is a fourteen year repayment mortgage taken out in 2006 on a fixed term of 14 years
Quote: For anyone interested it's tracker mortgage, and was discounted for the first two years, which was up until 2008. Now it just charges 1 percent above the b of e base rate, so currently 1 1/2 percent.

Do you have a fixed or a tracker?...

If you owe ie 100k over 14yrs and yr rate is fixed for 14yrs on a repayment basis, you can't possible have a shortfall!

Gorgeous_George

Sounds like a fixed term of 14 years with a variable rate of BofE BR +x% for 2 years followed by BofE+1% for the remiainder of the term.

Did YB fail to increase the rate from BofE BR +x% to BofE BR +1%? Maybe the mortgage was set once per year

Either way, it could be a tracker for a fixed period of 14 years.

GG

lobatt

It's a tracker, one percent over b of e whatever the rate is at the time

VIGILANT22

But how could a shortfall occur if you have a repayment mortgage for 100% of the borrowing?

lobatt

And it's variable, it was just that it was an offset & discounted for the first two years

lobatt

VIGILANT22 wrote: »

But how could a shortfall occur if you have a repayment mortgage for 100% of the borrowing?

Exactly! Thought I'd left this problem behind when I dumped my endowment and started afresh with a brand new repayment mortgage at a new bank

JA1000

Something doesn't add up here, some info missing,