Fixed rate nearly up

Dave_J_3

Hey guys,

my 5yr fixed rate with YBS is nearly up and im after some advice from normal people rather than people trying to sell me something

Basically currently on 5.79% and while checking through paperwork it says
"Product description - 5.79% fixed then Bank of England + 0.75%"

However while looking through their website, it seems their SVR is 4.99%

now im little confusd as to what is going to happen to me. Would I fall onto 0.75% + BoE or will I end up on the 4.99%

please help if you can, thanks

Thrugelmir

Your product description is the rate you'll default too. So .75% above base.

A welcome relief for you in these financially constrained times !

Remember if you ever move to another product you'll never ever get this low rate again.

GMS

As Thruglemir says a rate of 1.25% will most likely never be achieved again.

Check the small print for a minimum rate if any, sometimes there is a 'floor' on how low the rates will be allowed to go regardless of bank rate.

Remember that the revert rate will change in line with any increases to base rate but you have the opportunity to overpay when the payments drop. If you were comfortable with the payments when 5.79% then you may wish to continue with the same amount in order to reduce the capital.

Also keep in mind that fixed rates are rising at present and will continue to do so when base rates rise so if you want security of fixed payments now would be the time to take advantage.

All comes down to your attitude to risk whether to take a chance on the tracker or not.

Dave_J_3

ok guys thats excellent news.

I will defo take the advice about checking small print. Not noticed anything obvious previously but will certainly double check again

thanks

getmore4less

Product description - 5.79% fixed then Bank of England + 0.75%"

Welcome to a liftime tracker rate that is lower than savings rates.

Enjoy.

Burridge60

You could say you have profited by mis buying this mortgage!

It's a great rate. Enjoy it and stash the cash you are saving now to meet the mortgage when the BoE goes back to where it came from.

Dave_J_3

Again guys thanks very much.

I've souble checked as much paperwork as i can look through and as far as I can see there is nothing about minimum rates etc so fingers crossed this is correct.
I couldnt find anything on max overpayments either but I have heard some mortgage lenders only let you overpay certain amounts, how true is this??

Whats everybody's thoughts on interest rates going up?? Anytime soon you think??

again thanks

Thrugelmir

Dave_J wrote: »

I couldnt find anything on max overpayments either but I have heard some mortgage lenders only let you overpay certain amounts, how true is this??

Whats everybody's thoughts on interest rates going up?? Anytime soon you think??

Check with your lender regarding overpayments. Many have relaxed their rules for 2011 some as far as unlimited.

During 2011 I would expect a minimum .25% to .5% rate rise whatever the inflation rate or how the economy performs . The BOE will have to start to adjust peoples expectations upwards. The current base rate really was an emergency rate to avert a financial meltdown in the banking system.

Dave_J_3

hey guys,

sorry to bring this back to life but thought I would make you aware that even though I thought I had checked everything I could get my hands on, it seems there was a "small print" afterall

the floor rate is 3.75% totally gutted about this as I was hoping to get some serious cash saved and eventually paid off the balance or towards deposit to move

so they have offered a 2 yr fixed at 4.99% and thereafter 4.99 SVR or I can just let it run and it auto changes to 3.75%. I need to check with them if the BOE increase but is still less than 3.75 would It affect my rate.

anyways, my advice is to check, check and double check again

thanks

GMS

Base rate would need to be 3% before any further rises affect you if you chose to stay with that product. The lender had added 'insurance' in the form of the minimum of 3.75% rate. Still BBR + 0.75% subject to that 3.75% being a minimum.

What is your LTV? You may find a better rate elsewhere although if they have offered 4.99% I am guseeing 90%?

Radionotme

Since this thread has been revived anyway, it's interesting to note the posts from the beginning of the year:

During 2011 I would expect a minimum .25% to .5% rate rise whatever the inflation rate or how the economy performs . The BOE will have to start to adjust peoples expectations upwards. The current base rate really was an emergency rate to avert a financial meltdown in the banking system.

That was definitely what most people thought, and yet now the base rate is unlikely to move at all this year, if anythign, more QE looks more likely.
Very much looking forward to the end of my fixed next year!