4.44% fixed for 2 years, 95%LTV with no HLC - Woo Hoo!

CarpyQS

Hello all,

I'm feeling quite pleased with myself today after securing a 25yr repayment mortgage with Yorkshire BS for £131k + 5% deposit (i'm a FTB'er), 4.44% fixed for 2 years and THEY pay the HLC. They fee is not a problem and way way cheaper then having it added to the mortgage as other lenders offer. The real terms saving is over £150 a month compared with some and without the thousands other lenders add in fee's and HLC's, Interest calculated dailey as well. no tie in after the 2 year period etc etc

I hope i'm right in thinking this is a good deal?

Any views for or against?

It not signed yet so all opinions welcomed

Scott

It sounds almost like too much of a good deal....

Check the small print.

CarpyQS

thanks for the reply scott, I do agree with what you say hence the reason for the post. All areas i'm aware of seem to be covered, The fee of £495 and valuation of £270 seem a bit steep to me so they must claw back some profit from them. Areas i've checked and happy with are as follows -

HLC (None)
Overhang / Tie in (none after 2 yrs)
Upfornt costs (as detailed above)
Lending criteria had been met

I need to check if they have any Insurance requirments and if so if they are competitive. It seems strange as most lenders were adding between £2k-£8k for the HLC!

I eagerly await the package in the post

Scott

Yeah, look for the little tiny dot at the bottom right. It's the microdot print .

Check to see what the fees are like during the course of the mortgage (there are rumours of a move towards lowering initial fees and increasing maintenance fees). Also, find out how much the sealing fee/deeds release fee is.

I have a feeling they may just be trying to jump the gun on the BoE dropping rates, as that rate is actually losing them money. They aren't clawing it back on initial fees, I'm dubious.

Perhaps one of our advisors who are more familiar with the product could comment further?

YorkshireBoy

CarpyQS - as you've opted for the package without fee assistance, don't forget to budget for legal fees at around £300-400.

You'll not go far wrong with YBS. With the exception of a 5 year stint with Bradford & Bingley in the 90's, we've had 5 mortgages (on 2 houes) with YBS since 1982 and never had cause for complaint.

Only difference between the current packages & our re-mortgage deal done last October is that they've removed the option to make "unlimited" overpayments - something that probably won't concern you as a FTB.

CarpyQS

i just had a go at printing the KFI for what appeared to be the same product and it included a HLC! When i aranged it today there specificaly said it was paid by them, as long as i avoid that £2338 i'll be fairly happy. But i'm begining to doubt it a bit

river_kwai

CarpyQS

YBS's interest rates after the fixed period is 6.6%!!! A&L offers same interest rates (4.44%) for first 2 years and an interest rate after than of 5.5%. A&L's fee is £395 + valuation of £310.

I think most banks would pay for your HLC if you pay 10% deposit. I know A&L does. I was initially going to suggest you to approach A&L and ask them to match YBS HLC waiver? But you yourself are beginning to doubt YBS HLC waiver!

CRUISEMAN

Be careful...A&L charge interest on an annual basis and if you are taking a repayment mortgage, the initial payments will be higher!!

river_kwai

no, A&L charge on a monthly basis, not annual basis. The capital is even calculated daily when you oerpay by £500 in a month.

CarpyQS

the details came through and it did inc £2338 HLC!

To good to be true and a word of warning to double check whats offered over the phone because to me it becoming increasingly obvious they phone oiperators havn't got a clue and they hide behind the massive disclaimer at the start of the call - so much for auditing & accreditation improving service!

YorkshireBoy

I'm feeling a bit guilty now for singing their praises earlier in this thread!

Let me try and get my head round this HLC. Is this a charge they make because you don't have a 5% deposit, and hence can't make their maximum LTV? If it is, it's gone up considerably since we started back in 1982. Back then, because we only had a 10% deposit! (they required 15-20% from memory), to cover the additional risk of defaulting the YBS charged us an "insurance premium".

So, if my understanding is correct, you are being asked to pay a premium of £2,338 for a risk of £6,550. I've just checked my premium from 1982 and we paid £48 for £1,700 risk cover!!

Unless of course I don't know what I'm talking about (which is quite possible ).

Can someone enlighten me?