Yorkshire Building Society launches new fixed rate mortgages

Yorkshire Building Society has launched a new range of lower priced fixed rate mortgages, with a greater cut offered for borrowers who have larger deposits.

The new range also offers home-movers and re-mortgagors a choice of either a low rate with a standard arrangement fee of £999 or a higher rate without a fee and with financial help towards legal and valuation costs. The new products are:

5.49% Fixed Rate – available for two, three, five and 10 years
Arrangement fee £999
Up to 75% of the property value

5.69% Fixed Rate - available for two, three, five or 10 years
Arrangement fee £999
Up to 95% of the property value

6.39% Fixed Rate - available for two, three or five years
No arrangement fee
Incentives of 0.50% cashback for house purchase or free valuation and legal service for re-mortgages.
Up to 95% of the property value

6.29% Fixed Rate - available for 10 years
No arrangement fee
Incentives of 0.50% cashback for house purchase or free valuation and legal service for re-mortgages.
Up to 95% of the property to value

Commenting on the new mortgages, Tanya Jackson at Yorkshire Building Society said: “With this range we are providing the option of a lower rate for customers with a bigger deposit. The majority of our customers do have a deposit of more than 25% of the property they are mortgaging against, so we expect this change to appeal to many applicants.

”In addition, the new range has priced the fixed rates at the same level irrespective of the term which will enable borrowers to choose the length of deal they want rather than selecting purely on price. Traditionally two year fixed rate deals have been cheaper than longer term deals, which has attracted borrowers to them. It will be interesting to see the term borrowers choose when price isn’t a deciding factor.”