by Mark Johnston
With base rates at an all time low many borrowers are looking to lock themselves into attractive rates for a substantial period of time. One of the benefits is the savings that can be made by only having to pay a single fee rather than a new fee each time a shorter term mortgage is agreed.
Andrew Hagger of Moneynet.co.uk believes the 4.99 per cent mortgage from Yorkshire Building Society is an “attractive looking rate”.
The Yorkshire building society currently offers 40 different mortgages including several longer term propositions. Its 10 year fixed rate mortgage is currently offered at4.99% (5.2% AP but borrowers must have at least a 25% deposit. At the end of the fixed term the mortgage moves to a variable rate which is currently at 4.99%.
This is a £995 product of which £195 needs to be paid upon application. This is non refundable so think carefully before making your application. A further £90 mortgage fee is also payable taking the total fees to well over the £1000 mark.
When taking out a longer term tied in mortgage its always worth finding out what the early redemptions fees are. You never know you might win the lottery and be looking to pay it off next year. The Yorkshire Building Societies 10 year fixed rate mortgage has a rolling penalty starting at 7% in the 3rd year reducing to 1% in the final year. This might seem quite high to some but the Yorkshire Building Society allows over payments of up to 10% each year without any penalty.
The Northern based building society also has some great deals for people looking for a fixed medium term product. The societies 5 year fixed rate mortgage is offered at 4.49% APR 5% for the 75% loan to Value (LTV) version whilst the 85% loan to value version comes in at 5.49%, both revert to the Yorkshire building society’s standard variable rate which is currently 4.99%
For those that are not looking to be tied into a fixed rate the Yorkshire building society offers a range of Bank of England base rate tracker mortgages to suit your needs and the size of your deposit. Tracker mortgages work by tracking a percentage above (but sometimes below) the bank of England base rate. The Yorkshire Building Society offers a variable rate of 2.39% which is the current base rate (0.5%) plus 1.89% with a loan to value ratio of 75%. Remember that the Bank of England rate can increase or decrease and this would affect the amount you pay each month. Fees are £995 with a £90 mortgage fee which also apply to their 85% loan to value version that is currently on the market at 3.59% which is tracked at 3.07% above base rate. All these offers are for first time buyers. Home movers and remortgage options are available at a slightly higher rate. To see some of the other up to date mortgage deals that are available on the market make sure you keep visiting our mortgage news section at mortgagerates.or.uk
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