Remortgage 

YBS offers new fixed-rate deals for remortgagers

YBS offers new fixed-rate deals for remortgagers

Yorkshire Building Society (YBS) has launched a two-year fixed-rate mortgage at 1.19 per cent aimed at homeowners who want to remortgage.

The mutual has cut rates on selected remortgage and house purchase options and added extra features to some of its mortgages including free standard valuation, free legal service and cashback on completion up to £500.

The move has come as the market is set to enter the biggest maturity period in five years.

More than £35bn worth of mortgages are due to mature in September and October, prompting borrowers to look for new deals, according to digital consultancy Caci.

Among the YBS products on offer for buyers and remortgage customers is the two-year fix at 65 per cent loan-to-value (LTV) at 1.19 per cent.

This mortgage comes with a £995 fee and £500 cashback.

Those who want to take up a low-rate offer for a longer period can choose the society’s five-year fixed-rate remortgage option at 75 per cent LTV at 2.39 per cent.

The offering will also help with upfront costs, because it has no product fee and comes with free standard valuation, free legal service and cashback on completion of £250.

The mortgage lender said it hoped that by reducing rates on mortgages and adding “attractive” additional features it would ease the cost of remortgaging for borrowers and "give them a helping hand at what can become an expensive time”.

According to comparison site Moneyfacts as at 30 August 2017 this mortgage was the lowest true-cost two-year fix at 65 per cent (LTV) at 1.19 per cent, which includes the £995 fee.

It equates to monthly repayments of £771.07, which over two years would cost £19,500.71, plus borrowers get £500 cashback, compared to the lowest rate in the market currently of 1.14 per cent with a £1,695 fee and no cashback, with monthly repayments of £766.49 and the cost over the two years being £20,090.70.

Provider view:

Charles Mungroo, mortgage manager at Yorkshire Building Society, said: "With so many maturities in the next couple of months, now is the perfect time to support those looking for a new deal with a range of different options to meet a variety of needs.”

Adviser view:

Matthew Harris, director at Harris Independent Financial Advice, said: “Having checked our mortgage sourcing systems it does look like the new two-year 65 per cent LTV deal would be pretty competitive, especially for clients in need of a larger mortgage.

“For clients looking for a mortgage of under £150,000 it is likely to make more sense to choose a higher interest rate product with a lower fee, such as those offered by Coventry.

“The five-year 75 per cent remortgage deal doesn't look competitive sadly. The rate is 2.39 per cent, but there are identical fee-free deals out there for 2.10 per cent via an intermediary with Accord, the sister company of Yorkshire Building Society, or via Tesco for clients wanting to go direct.”

Charges:

The two-year option comes with a £995 fee and £500 cashback. The five-year offer has no product fee, free legal service and cashback on completion of £250.

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