Yorkshire launch new stepped rate mortgage
10 August 2005
Two years after the cheapest ever fixed rate mortgages were available, Yorkshire Building Society is launching a new, limited issue, stepped rate mortgage which is only available for its existing borrowers.

The new mortgage, which is being launched to coincide with the end date of the very low fixed rate deals, will help the Society’s borrowers bridge the payment shock from their current pay rate to today’s higher rates. The new mortgage will be charged at 3.99% fixed for the first year and 4.69% fixed for the second year - giving a very competitive average two year fixed rate of 4.34%.

Many of the borrowers who are eligible for this new mortgage have been paying mortgage interest at 3.29% for the last two years and will transfer onto the Society’s standard variable rate of 6.60% at the end of the month, if they don’t take action now.

Karen Miller, Product Manager at Yorkshire Building Society said "Many lenders only offer their best rates to new customers, leaving existing borrowers to choose inferior products. At the Yorkshire we reward customer loyalty by making attractive products available to existing customers.

"As we have more than 3,300 borrowers coming to the end of a special rate deal next month it was important for us to provide a good value mortgage option that would help with the inevitable increase in mortgage payments. The new stepped rate mortgage launched this week should be a great solution, but funding for this product is limited so interested borrowers should contact us without delay."

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