I need help with mortgage calculation

Joe_Bloggs

What Payless may have been hinting at is that the YBS standard variable rate is 6.4%. This would mean a monthly repayment of £814 for £117,542 over 23 years. A few of the current YBS deals have an interest rate step after a certain number of years. This step is not always to SVR. Current products on offer are not an indication of past products. Perhaps it would be advisable to find your original mortgage documentation rather than be treated like a mushroom by YBS. They probably should have sent you notice on an interest rate variation as well as the direct debit change. The Bank of England rate is 4.5%. You could be on BoE + 0.25%.
J_B.

payless

I know what you mean- did past my mind when posting although OP said

I'll be going on to their basic rate

meanmachine_2

Sounds to me like the OP is on a stepped fixed rate.

There is no way they would be offering a new deal at just 3.99%, more like around the 4.3% mark, wouldn't you think?

So yes, your mortgage is going up, and if it's a stepper, then it'll go up again in another year or so.

Stepped mortgages are a total no-no in my opinion, as you're locked into a much higher rate for the final year (or beyond).

payless

You are right , we did not clarify if 3.99% was a new deal or the next step in existing arrangement, but does not really matter if rates don't add up ( still think it might beadded insurances)


On the whole I agree with you about stepped rates