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Change to our Standard Variable Rate
Your questions
- What’s changing?
- What other rates are changing?
- Why is this happening?
- Why are you making this increase when the Bank of England base rate is unchanged?
- Do you have other rates I can switch to?
- When will I receive a letter about the change?
- If my payments are changing, when will it happen?
- If I pay by Direct Debit do I need to do anything?
- If I pay by Standing Order do I need to do anything?
- What if I’m receiving payments to my mortgage from the Department of Work and Pensions (DWP)?
- If I make regular overpayments, do I need to do anything?
- What if I have a special payment arrangement?
- How can I find out the outstanding balance on my mortgage?
- What if I have Accident, Sickness and Unemployment insurance?
Answers
What’s changing?
On 1 May 2012 Yorkshire Bank’s Standard Variable Rate (SVR) will move from 4.59% to 4.95%.
What other rates are changing?
In addition to Yorkshire Bank Standard Variable Rate (SVR) we are also increasing Yorkshire Bank Offset Variable Rate (OVR) (currently 4.59%) to 4.95% from 1st May 2012. Any products linked to either the SVR or OVR will also increase in line with this change.
The Offset Variable Investment Housing loan and Second property Offset Variable rate (currently 4.99%) will increase to 5.35% from 1st May 2012.
Why is this happening?
The costs associated with funding mortgages have changed significantly in the three years since the rate last moved. We don’t take such decisions lightly but it’s important that we continue to support savers and maintain the competitiveness of our deposit rates. This change will help us do that.
Why are you making this increase when the Bank of England base rate is unchanged?
Our SVR is not directly linked to the Bank of England Base rate. The costs associated with funding mortgages have changed significantly in the three years since the rate last moved. We don’t take such decisions lightly but it’s important that we continue to support savers and maintain the competitiveness of our savings rates. This change will help us do that.
Do you have other rates I can switch to?
Yes, we have a range of other products which you can consider if you feel your circumstances have changed. For more information please visit New Deals for Existing Customers.
When will I receive a letter about the change?
We will be writing to all impacted customers to inform them of the change by the end of March. We will also write to confirm exactly how the change will affect mortgage repayments on the 1st May 2012. We want to provide you with as much information as we can of the changes to our interest rates, but in order to provide you with your new monthly payment we need to review your outstanding balance nearer to the date the interest rate change takes effect, which will be your May payment date.
For guidance on how this change might affect you, we have set out some example payment illustrations in the table below:
| Balance | Monthly Repayments (current rate 4.59%) |
Monthly Repayments (new rate 4.95%) |
Change to Monthly Payment | |||
|---|---|---|---|---|---|---|
| Capital Repayment | Interest Only | Capital Repayment | Interest Only | Capital Repayment | Interest Only | |
| £5,000 | £31.88 | £19.13 | £32.86 | £20.63 | £0.98 | £1.50 |
| £10,000 | £63.75 | £38.25 | £65.72 | £41.25 | £1.97 | £3.00 |
| £25,000 | £159.38 | £95.63 | £164.30 | £103.13 | £4.92 | £7.50 |
| £50,000 | £318.76 | £191.25 | £328.60 | £206.25 | £9.84 | £15.00 |
| £100,000 | £637.52 | £382.50 | £657.20 | £412.50 | £19.68 | £30.00 |
The table is for illustrative purposes only and capital repayment calculations are based on 20 year remaining term.
If my payments are changing, when will it happen?
If you make monthly repayments, the new payment will be applied to your June 2012 payment.
If you make weekly or fortnightly repayments, the new payment will be applied to your second payment in May 2012.
We will write to you on the 1st May confirming the date and amount of your new payments.
If I pay by Direct Debit do I need to do anything?
No, we’ll take care of everything for you. There’s no need to contact us.
If I pay by Standing Order do I need to do anything?
Yes, you’ll need to ask your bank to change your monthly mortgage payment starting from the date shown on the letter which you will receive from us. Unfortunately we can’t do this on your behalf.
What if I’m receiving payments to my mortgage from the Department of Work and Pensions (DWP)?
If you use Direct Debit to pay the difference between your full monthly mortgage payment and the amount of DWP benefit, please contact us using the number shown on your letter – as you’ll need to change your Direct Debit amount.
If you use a Standing Order, please ask your bank to change the amount you pay as per the increase shown on your letter.
If I make regular overpayments, do I need to do anything?
Your new monthly payment includes any regular overpayments that you’ve arranged as part of your ongoing Direct Debit payment. If you make your overpayment as a separate payment amount, that will also remain unchanged.
What if I have a special payment arrangement?
The current temporary arrangement agreed with you will remain in place. If there are any further changes, our Collections department will contact you.
How can I find out the outstanding balance on my mortgage?
We send all our customers an annual mortgage statement showing the outstanding balance. If you are registered for 24 hour internet banking, you can check your balance online or alternatively if you are registered for Telephone Banking, you can check your balance by calling 08447 368 368.
If you’re looking to pay off your mortgage in full, please get in touch and we’ll send you a Redemption Statement.
What if I have Accident, Sickness and Unemployment insurance?
In line with any change in payments you should ensure that the level of cover you have in place is sufficient. This can be done directly with your insurance provider.