End of fixed term. Staying with lender. Is this a good deal?

SternMusik

Hello,
My mortgage fixed term is coming to an end on 28/02 next year. I am with YBS. I have made significant overpayments since I first took out the mortgage five years ago, and got the LTV down to about 20%. Outstanding loan by the end of February will probably amount to £55'000.

I'd like to stay with my lender ideally. The deals currently on offer for existing YBS customers are here: www.ybs.co.uk/pdf/mortgages/product-additional-lending.pdf

I'm thinking of going with the 2 year fixed rate at 1.79% with no booking fee, which allows up to 50% overpayments. Is this a good deal? I'm hoping to bring the loan down further over the next two years, so I'm not terribly concerned about the follow-on rate of 4.74%.

amnblog

This is a competitive rate. Whether it is the right product for you I cannot say.

Glover1862

On such a low amount it's hardly going to make any difference, would you really want to go through finding another lender to save £3 or £4 a month and potentially loose the 50% overpayment? Even the very best rate are only about 0.2% lower, if any cost to move involved you'll never recover the money.

SternMusik

amnblog wrote: »

This is a competitive rate. Whether it is the right product for you I cannot say.

Thank you. Yes, I was wondering if it is a competitive deal. I am happy to take out a 2 year fix, so not worried about that. I'd like the ability to make overpayments, so that makes the deal attractive to me, as well as the interest rate.

The idea of re-mortgaging and going through the full application process again fills me with dread, so if this is a decent offer I'll happily stay with YBS

SternMusik

Glover1862 wrote: »

On such a low amount it's hardly going to make any difference, would you really want to go through finding another lender to save £3 or £4 a month and potentially loose the 50% overpayment? Even the very best rate are only about 0.2% lower, if any cost to move involved you'll never recover the money.

Thanks Glover, that is my thinking too. My only doubt was whether the deals on offer are horrendously uncompetitive, but that doesn't seem to be the case. Definitely not worth switching lender for £5 a month

getmore4less

£55k 1.79% interest only, £82pm.

How much lower do you think you can find. say 0.99% that's £45pm before any fees and hassle changing.

repayment those interest numbers drop over time.

how much do you plan to pay per month?

Thrugelmir

SternMusik wrote: »

Outstanding loan by the end of February will probably amount to £55'000.

With the amount owed relatively low and reducing rapidly. Opportunities to remortgage cost effectively will become progressively more difficult to find. Overpaying while interest rates are low appears to be your best option.

SternMusik

Thanks all.

It's a repayment mortgage, remaining term is 20 years. At 1.79%, the monthly instalments work out around £270. Over the next two years I would like to clear another 10k off the balance in overpayments.

I may not be able to do this though. I'm currently incurring quite significant health related costs, which is one of the reasons I'd like to keep my monthly contractual commitments low, to give me financial wiggle room should I need it.

From what you are all telling me, 1.79% is a competitive rate, and the chances of making significant savings by remortgaging elsewhere are approaching zero.

Thus I shall opt for this customer retention product. I'm now just waiting for the paperwork to come through in the post. Thanks to everyone for the replies :wave:

getmore4less

check the fees if any before committing.

the 1.69 with 10% overpayment seems a better fit.