YBS - Changing deal after application but before completion?

Morcerf

Hi,

We've been thinking lots about whether to take out a 2yr tracker or 5 yr fix with YBS. We finally settled on the 5 yr fix last week, and paid the arrangement fee and valuation fee.

However, we're having a change of heart.

Does anyone know if we are likely to be able to change product at this stage without incurring extra costs?

The arrangement fee on the two mortgages are identical, as is the LTV requirement - and both are with Yorkshire Building Society.

Their helpline is closed now - but wondered if anyone on here knew the answer?

Thanks

opinions4u

What does your paperwork say about fees being refundable?

Most likely is that they'll agree to change things, but not refund the fee. Any new product fee would apply.

But a chat with the broker or lender would be the next step.

Morcerf

The fees are £995 - £195 payable on application and not refundable. But given it is the same across both products, I was hoping they'd have a little flexibility perhaps? We're right at the start of the application.

holly_hobby

If the fee paid is a reservation/product fee (which effectively reserves a tranch of funds for you at the selected rate), and you change the deal - the reservation fee will be forfeited (with a new res fee for the new product, if one is reqd)

If its some sort of admin fee, and not detailed as a res/product fee - you may have flexibility in not having to pay it again on any replacement product selected,as it isn't product/rate specific (and I would certainly argue the point if this is the case).

But as I say if the fee is a reservation fee it will be probably by lost (unless as you wish to stay with YBS, but just switch deal, they may elect to wavie its forfeit - doubtful, but if you don't ask, you don't get)

Hope this helps

Holly

dimbo61

Ring them first thing monday morning and ask !
I am with YBS good company]

gordylad

I did the exact same thing gave them a ring and explained that I had reworked my finances and now wanted to change product. No problem at all.

Going for the 2yr tracker at 2.29 which then fixes at 3.79 for the remaining 3 years. Think it gives the best of both worlds over 5 years. I personally cant see a change in the immediate future with regards the base rate but in a couple of years who knows............

Morcerf

gordylad wrote: »

I did the exact same thing gave them a ring and explained that I had reworked my finances and now wanted to change product. No problem at all.

Excellent, that was just the kind of thing I was hoping to hear!

We were planning to get (and applied for) the 3.59% 5 yr fixed offset. Thinking now that we'll do the base rate +1.89% 2 yr offset. Reckon rates won't be rising that quickly anytime soon... but you never know I guess!

That 2 yr tracker/3 yr fix looks great too - but we want either an offset or something that would allow us to overpay by more than 10% a year.

gordylad

did consider the offset but have some mortgage on interest only so not worthwhile

Morcerf

I don't understand - why does having some mortgage on interest only not make it worthwhile? We were planning on having interest only, but putting a regular amount in an offset savings account.

gordylad

i know that if you have savings in your offset linked saving account you will only pay interest on the balance but we are keen to reduce the length of our mortgage term:

Offset savings will not automatically reduce the term of a mortgage balance that is interest only, just the amount of interest paid..............

Morcerf

I see what you mean, but you can achieve the same thing (reduced mortgage term) by keeping the amount of money you put towards your mortgage constant and building up your savings to pay off the total mortgage balance earlier.

For example, when we start this new mortgage our interest payments will be around £400. We'll be putting aside £2000 a month towards the mortgage though - so effectively 'repaying' capital of £1600 a month (it won't actually be repaid - it will be sitting in an offset savings account). As the amount of interest reduces, the amount we save will increase.

We've worked out that this will mean we'll have enough to pay off our remaining mortgage balance in around 10 years