YBS launches two 25 year fixed rate mortgages

Yorkshire Building Society is launching two new 25 year fixed rate mortgages with rates of 6.29% and 6.49%, available from Wednesday 15th August.

The main features of the new mortgages are:

6.29% - 25 year fixed rate mortgage

Rate fixed at 6.29% for 25 years
Early repayment charges of 3% apply for the first 10 years only
Product fee of £595
Flexibility to overpay by 10% each year without charge
Available for up to 90% of the property value
Fully portable should the borrower move home

6.49% - 25 year fixed rate mortgage

Rate fixed at 6.49% for 25 years
Early repayment charges of 3% apply for the first 5 years only
Product fee of £595
Flexibility to overpay by 10% each year without charge
Available for up to 90% of the property value
Fully portable should the borrower move home

The new products offer borrowers the security of fixed mortgage payments and the flexibility to ensure the loan meets their current and future needs. Unlike most competitor products, borrowers can also choose how flexible they want their mortgage to be, with an option to have early repayment charges ending after just 5 years, or choosing a lower monthly rate with early repayment charges applicable for the first 10 years.

Yorkshire has seen a significant increase in sales of five and 10 year fixed rates over the last year and these new products will help the Society to test customer appetite for longer-term deals. Funding for the new products is however limited and therefore early applications are recommended.

Iain Cornish, Yorkshire’s Chief Executive said “Our new products support the Chancellor’s desire to boost the supply, and take up, of long term fixed rate loans whilst giving customers real choices when considering these products. Whilst our 25 year fixed rate mortgages are available for both house purchase and re-mortgages, these products are particularly good for first time buyers. They shouldn’t be put off by the longevity of the loan, the mortgage is fixed for 25 years but it’s portable and can move home as often as the customers want to. The one thing that is almost guaranteed for first time buyers is that they will have a mortgage for the next 25 years!”

Yorkshire’s 25 year mortgages will only be available through the Society’s national network of 131 branches, where fully qualified mortgage advisers will ensure customers fully understand the product and its features.