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Types of mortgagesYorkshire Building Society offers a wide range of different types of mortgages - fixed rates, offset accounts, Bank of England trackers, first time buyer mortgages and other specialist products - many with special deals and features. Many of our mortgage products have a specified end date so, for example, what may be called a 2 year fixed rate, could actually last for longer or shorter than 2 years. Read more about this Click on a panel to find out more about our different types of mortgages. A fixed rate mortgage has a fixed rate of interest for a given period. Choosing a fixed rate mortgage allows you to plan your finances, safe in the knowledge that your mortgage will not be affected by interest rate fluctuations during the period in which the fixed rate applies. If your interest rate is fixed it could be higher or lower than other variable or fixed interest rates in the market depending on these fluctuations. There may also be early repayment charges payable, depending on the product taken, if you want to come out of a fixed rate mortgage before the end of the fixed rate period.
Our simple offset account allows you to combine your mortgage and savings to make your money work harder. Your offset mortgage and offset savings accounts remain separate, so you still have access to your savings, but your savings reduce the interest charged on your mortgage. This means:
* If you wish to use offsetting to reduce your mortgage term you will need to contact us. Otherwise, at annual review, your payments will be adjusted every year rather than reducing the term of your mortgage. Equivalent savings rate explained In effect the money in your savings account will achieve the equivalent rate that you are being charged on your mortgage. The equivalent savings rates shown in the Offset products descriptions are based on the current interest rate of the mortgage product and, therefore, where this rate is variable or reverts to a variable rate the equivalent savings rate will change when the relevant mortgage interest rate changes. With traditional mortgage and savings products you usually pay a higher rate of interest on your borrowings than you receive on your savings. If you are a taxpayer you may also pay tax on the interest that you earn on your savings. With a Yorkshire offset account the balance on your savings account is taken from your offset mortgage balance before we calculate the amount of mortgage interest you are charged. So, your savings benefit by the equivalent of the mortgage interest rate and you don't have to pay tax because your savings don't earn any interest. Buying your first home can be an expensive time. We have a range of mortgages specifically for first time buyers that will help you with some of the costs, and offer these benefits:
Please note that some of our mortgages have early repayment charges - please refer to individual mortgage products for more information. For details of the products currently available please take a look at our current first time buyer mortgages, and only one applicant needs to be a first time buyer to qualify. If you have any questions about our special products for first time buyers please visit one of our branches and talk to our friendly mortgage advisers, or phone our Member Contact Centre. These are mortgages where the interest rate payable is set at a certain level in relation to the Bank of England Base Rate. As the Bank of England Base Rate is variable, it can go up or down during the term, causing the interest rate you pay to vary. This can mean that the Bank of England Base Rate, and therefore the interest rate you pay, may at times be higher than our standard variable rate. These products are offered from time to time. With a capped rate mortgage, you pay a variable rate of interest, but any future increase is capped at a specified rate for a set period of time. This means that if the variable rate falls below the level of the cap, you are charged a lower interest rate but if the variable rate increases, you have the reassurance that your interest rate will not rise above the specified capped rate. The variable rate of interest on a capped product is usually linked to or tracks either the Bank of England Base rate or our Standard Variable Rate.
Help when a relationship ends It's sad, but relationships do sometimes come to an end. That doesn't mean there shouldn't be help and support available to deal with this though. Fresh Start is a special service for people starting again after the end of their relationship. What does Fresh Start involve? Fresh Start is primarily about helping you finance a new home. However, it also offers access to independent experts and professionals who will be able to help you deal with the wider aspects of your situation in confidence.
Most lenders have what's known as a standard variable rate. As the name suggests, the rate of interest can vary upwards or downwards. At the end of special deals, many borrowers may pay this rate, so even if you initially opt for a special deal, you should take note of it.
The majority of our mortgage products refer to the fact that the interest rate is applicable until a specified date, the product end date. This means that although the product may be referred to as a '2 year fixed' for example, then depending on when your mortgage (or mortgage product transfer or additional loan) completes, the rate of interest may last slightly more or slightly less than 2 years.
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