Switch and save with a Yorkshire rollover remortgage
Yorkshire Building Society is encouraging homeowners with a shorter term left to run on their mortgage to see if they could save on their monthly repayments.
So-called "last time buyers" who have low balances outstanding and are looking forward to redeeming their mortgage in a few years' time often think it is not worth switching.
Many of these will be paying a standard variable rate (SVR) - almost £300 billion of the country's mortgage debt is represented by homeowners repaying at SVR, £49 billion of which is outstanding on mortgages of less than 40% LTV.
The majority of these borrowers with low balances and shorter terms are paying more than they need to but may be deterred from switching lender because they do not want to pay large remortgage fees or do not think switching will make much difference to their monthly payment. The Yorkshire is encouraging these borrowers to think again and consider switching to a unique mortgage product designed specially for them - the Rollover mortgage.
The Yorkshire Building Society Rollover mortgage has a rate of 2.99%, lower than the majority of SVRs - is fixed for one year, and has a low, one-off fee of £495.
"The Yorkshire has a reputation for great first time buyer mortgages but we haven't forgotten ‘last time buyers', those people who are looking forward to living mortgage-free in a few years' time," said Yorkshire Building Society Product Manager Jemma Smith.
"Many lenders' SVRs have been at an all-time low however they are now on the increase and borrowers are feeling the impact of these hikes - combined with an increase in living costs it can mean they are feeling the pinch.
"Just because borrowers have small balances and are close to paying off their mortgage doesn't mean they can't save money by switching lender.
"For example, even borrowers with low balances who are currently paying one of the lower SVRs at 3.99% could save almost £30 per month by switching to our Rollover mortgage.
"Here at the Yorkshire we've seen rising interest in our mortgages as borrowers are becoming increasingly aware that they could save money by switching from SVR."
The Yorkshire Rollover mortgage is available to borrowers with LTVs of 35% or lower and homeowners who remortgage with the deal are not charged another product fee at the end of the term if they stick with the Rollover product and roll over onto a new 1 year fixed rate mortgage.
At least one month before the one year term expires the borrower will receive details of the fixed rate for the next Rollover period and their new mortgage payments, as well as a reminder of their options should they wish to change product.