by Mark Johnston
The Yorkshire building society has launched a new three year fixed rate mortgage at 3.99%. which then reverts to 4.99% which is the northern based building societies standard variable rate (SVR).The overall cost for comparison is 4.8% APR and is offered to first time buyers, customer remortgaging their home, new customers moving home and existing Yorkshire building society borrower who are looking to move home. The new product is offered to borrowers who have a twenty five percent deposit giving the new mortgage a loan to value of 75%. The fee is £995, which includes a £195 non refundable fee on application.
The Yorkshire building society seems to be leading the way with headline rates at the moment and has appeared several times in best buy tables and in the news section of mortgagerates.org.uk.
For borrowers will smaller deposits, the Yorkshire building society offers a mortgage that only requires a 15% mortgage which would work out at £15,000 on a £100,000 mortgage. The mortgage has a fixed rate for 3 years of 4.59% which reverts to the societies standard variable rate (SVR). The fee is a lot more attractive too especially for those who are finding it difficult to save to get on the property market as its only £495, half the price of the 75% loan to value (LTV) version.
Tom Girling, product manager for mortgages at the Yorkshire Building Society, suggested the competitive interest rate of the home finance deal is just one reason to choose the arrangement.
He cited the quality of the service customers will receive and the security that comes with a fixed-rate contract as other benefits.
According to Tom Girling, approximately 80 per cent of all the applications received by the lender are for a fixe-rate product, which prompted it to make additions to this area of its range. “There is certainly a demand for this type of mortgage,” he said
The building society also offers a rollover mortgage wich allowers borrowers to fic their mortgage rate on a yearly basis for the lifetime of their product.
The current offering is set at 2.69% for mortgages with a loan to value of 65%. It also currents offers free home insurance subject to availability.
“Although we are currently in a low base rate environment, it is almost inevitable that rates will rise over the next few years,” said Mr Girling. That said many don’t agree, Lucian Cook of Savills remarked recently that the Bank of England’s decision to maintain the base interest rate at 0.5 per cent could benefit the country’s mortgage sector in the long term.
Recently the society announced pre tax profits of over £65 million for the first half of the year and continue to hold their own in the mortgage market by announcing new deals that are able to compete with some of the bigger players. Anyone interested can apply via one of the 135 Yorkshire Building Society branches or online via their internet site.
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