New fee-free, £1,000 cashback mortgages launched

Yorkshire Building Society is launching a range of fee-free, £1,000 cashback mortgages to help borrowers get on, or move up, the property ladder.

The Yorkshire is making 10 new house purchase mortgages available, with rates starting from 2.19% for a three-year fixed rate.

Five-year fixed rate mortgages start at 2.54%, and both the three-year and five-year products are available for those borrowing between 65% and 95% of their property’s value.

They will be available in-branch, online or over the telephone and via Barnsley and Chelsea building societies as well as the Yorkshire.

The Yorkshire, which is the UK’s second largest building society, commissioned research into the incentives and obstacles facing home buyers.

The study, conducted by YouGov among 2,000 people who don’t prefer to rent, showed that paying up-front fees (75%) was among the biggest barriers faced among prospective home buyers.

It also showed the most important reason for moving overall was the amount of living space available (93%), closely followed by the number of, or size of, bedrooms (90%) and type of property (88%).

Jemma Anderson, Yorkshire Building Society Mortgage Manager, said: “Paying up-front fees is often a major obstacle for some home buyers and we have tried to ease that pressure with these new mortgages.

“We hope removing our up-front fees and giving £1,000 cashback on this new range of mortgages will help people buy the property they want and turn it into a home.”