Focus on 10 year fixed rate mortgages

A huge rush over the weekend of 13/14 January has led to fixed rate mortgages being in short supply, with funding being exhausted by the demand.

Over 600 applications were received by Yorkshire Building Society over the period with two thirds of them being for 5 and 10 year fixed rate mortgages. A new range of products is being rushed out for Friday 19th January and the 10 year product at 5.35% is again looking good value.

Highlights from the new range are:-

Ten year fixed rate mortgage - 5.35% with a £595 application fee
Five year fixed rate mortgage - 5.49% with a £595 application fee

All of the new range is available up to 95% of the property value and as with all YBS mortgages interest is charged on a daily basis. All the products are portable should the borrower move house during the fixed rate period and overpayments of 10% per year are allowed.

Andy Caton, Corporate Development Director at YBS said, “All lenders were taken by surprise at last weeks rise in the Bank of England base rate. It came a month earlier than we were anticipating and judging from the volumes of business we did last weekend, it took the public by surprise also! The money markets are already factoring in a further rise next month so most of our new range of mortgages is between 0.30% and 0.40% higher than before. It is worth making the point however that despite some commentators suggestions to the contrary, this new range of products is producing no extra profit for the Society compared to the previous range.”