My mortgage, can anyone help me understand

dolly74_2

My mortgage with Yorkshire Building Society changes to £645.95 at standard variable rate in September. I understand the £645.95 but but not the standard variable rate part. I know it means it can go up and down but if things stayed as they are now, how much does that mean i will be paying in September? I cant afford to redeem it so i will have to stick with it and need to know how it will affect the budget. Thanks to all you clued up people out there.

maninthestreet

dolly74 wrote: »

My mortgage with Yorkshire Building Society changes to £645.95 at standard variable rate in September. I understand the £645.95 but but not the standard variable rate part. I know it means it can go up and down but if things stayed as they are now, how much does that mean i will be paying in September? I cant afford to redeem it so i will have to stick with it and need to know how it will affect the budget. Thanks to all you clued up people out there.

You'll be paying £645.95 per month.

silvercar

Accepting that you can't afford to redeem it, you may be able to remortgage with a different lender at a better rate. Your current lender may also offer you another rate if you ask.

UK007BullDog

What is the current SVR at this time with YBS? Looking at their website it states 7.15% is that the rate you are talking about? or are you looking at an old document when you took out your mortgage?

If you look here: http://www.ybs.co.uk/mortgages/current_products/index.jsp

they will closer to September offer you their latest deal which you can chose as any deal will probably be better than their SVR.

Why can you not redeem the mortgage in September?

Why dont you tell us your mortgage amount, property value, your income before tax and your age. We will then be able to help a bit more.

dolly74_2

SVR when i took it out was 6.6. Now, like you correctly say, it is 7.15. How does this affect the payments? I cant change the mortgage ecause my partner and i do not have as great an income as we had when we took mortgage out initially so they would not be able to give us one for amount we need. We will be able to afford new amount but we need to know what it will be/how much it will vary so we can budget for it. Thanks for your help so far.

Gorgeous_George

The SVR is set by the lender. In the past, it has been set at a competitive rate. With the credit crunch, there is no guarantee that it will remain competitive.

You need to sort out your finances so that you qualify for a new fixed-rate deal. This will also help you weather the storm if you do not secure a new deal.

GG

dwsjarcmcd

Depends when you took your product. YBS review the payments on their SVR annually (it has just happened, so you should have recently received your statement) so the payment will not change for another year. Other than re-morgtaging, which as other say may be possible, you have 2 options
1. Phone them and ask for your monthly payment to be reduced to take into account of the SVR reduction
2. Phone (or visit a branch) and ask about the products for Existing Borrowers. It will be cheaper than your current rate and you will have a choice of fixed raes with/without application fees. You will not need to supply any salary information and only sign a form. Just make sure you understand the terms and conditions of what you are signing for (early repayment fees etc) if you opt for this.

David

TwelfthMan

Current SVR is 7.15% reduced from 7.40% on Sunday

YBS product transfers as follows......

2,3,5,10 yr fixed @ 5.89%

2yr tracker BoE+0.79 with 2yr 3% ERC
3yr tracker BoE+1.04 with no ERC

You can look at a product transfer during the 90 days before existing product ends so it is very unlikely the same deals will still be available then. No income assessment will take place unless you request extra borrowing. Prob best speaking to your local branch nearer the time if you intend to stay with YBS.

UK007BullDog

Dolly:

What is the mortgage amount?
Property value now?
You and your partners income per year before tax?

You can remortgage with your lender ask for best deal for existing customers. But if you follow the link I posted it takes you to the page where the mortgage offers are.

With the higher rate that means your monthly payments on SVR will be even higher than what you posted originally your mortgage will be on the active SVR which is currently 7.15%.

dolly74_2

Do you mean that they adjust it for the year and let you know first? I am paying £577 a month at the moment but this was on a 3 year fixed deal at 5.29%. The new statement just tells me that from March it will be £576.79 which isnt much different. This is because the mortgage doesnt change til September. It doesn't tell me what happens in September. The only details i can find about what will happen after that is on original paperwork key facts document which, as i say earlier states that in September 2008, it will change to £645.95 at svr which back then was 6.6 but now is 7.15. So does this mean it will be that figure in September or will they add more on because the svr has increased? Its quite hard to understand. I have emailed them but am awaiting a reply. The mortgage is for £96,000. Thanks for yur replies so far.

TwelfthMan

dolly74 wrote: »

Do you mean that they adjust it for the year and let you know first? I am paying £577 a month at the moment but this was on a 3 year fixed deal at 5.29%. The new statement just tells me that from March it will be £576.79 which isnt much different. This is because the mortgage doesnt change til September. It doesn't tell me what happens in September. The only details i can find about what will happen after that is on original paperwork key facts document which, as i say earlier states that in September 2008, it will change to £645.95 at svr which back then was 6.6 but now is 7.15. So does this mean it will be that figure in September or will they add more on because the svr has increased? Its quite hard to understand. I have emailed them but am awaiting a reply. The mortgage is for £96,000. Thanks for yur replies so far.

I would either phone/visit your local branch or ring ther Member Contact Centre in Bradford on 0845 1200100