YBS 5 year fixed offset

330d

I have noticed Yorkshire building society doing a 5 year fixed offset mortgage at 2.44%, http://www.ybs.co.uk/mortgages/offset/products/5yr-fixed-offset-21756.html

What are the thoughts on this? I have got a reasonable amount of savings to offset against. Even thinking worst case, if I had no savings then a rate of 2.44% for 5 years is still not too bad.

Any thoughts?

Thrugelmir

Very much down to personal choice. You need a 65% of lower LTV to qualify.

Also look at the follow on interest rate. As your mortgage balance reduces remortgaging becomes a less and less viable option.

330d

Thrugelmir wrote: »

Very much down to personal choice. You need a 65% of lower LTV to qualify.

Also look at the follow on interest rate. As your mortgage balance reduces remortgaging becomes a less and less viable option.

LTV is not an issue, it will be a £120k mortgage on a £400k property.

I agree about the follow on rate being very high but i was thinking ill switch provider to a better deal after 5 years.

dimbo61

If you move lender in 5 years you have more costs!!!
Now I love offset mortgages and we were with YBS for nearly 8 years on a 5 year offset fix followed by a tracker deal.
You need to look at the overall costs and have you considered a Lifetime tracker offset ? Barclays/Woolwich do them as do other lenders,
Interest rates are not that important if you have savings

Morgage_Confused

Im in need of an offset and am considering FD. The problem I have with Barclays is that their tracker is not guaranteed to follow boe base. They set their own BBBR....barclays bank base rate. Very cunning.

pjread

That's a great looking 5 year rate to me, I'm only getting 0.1% lower on a 4 year fix (although that's at just the right side of 70LTV). If this was there at the right time I might well have tried to move things around to hit 65...

I suppose it does depend on your mortgage balance too though (about 1k of fees, so if you're sub 100k that might look expensive)

Thrugelmir

Morgage_Confused wrote: »

Very cunning.

Never ever been any different. Tracking bank base rate is a relatively new development. That some lenders have dropped since the 2008 GFC. As caused them no end of problems.

Thrugelmir

imr4n wrote: »

LTV is not an issue, it will be a £120k mortgage on a £400k property.

YBS are more than likely looking to target new customers in terms of quality over quantity, i.e. higher mortgage debt at the outset. As in 5 years time remortgaging may not be such an appealing option.