New exclusive Open Market HomeBuy mortgage

Yorkshire Building Society has announced a new exclusive Open Market HomeBuy (OMHB) facility that will increase the interest free equity element to 32.5% for the first five years.

The new product launches on December 3rd 2007 and replaces the Yorkshire’s existing 75%/25% product. It will offer the borrower a more affordable loan, a larger interest free equity element and the facility to be able to put in a deposit that will be deducted from the Government loan. The make-up of the new offering is 67.5% conventional mortgage from the Society, a 15% Equity loan provided by the Society, interest free for five years – 3% thereafter, and a 17.5% Equity Loan, interest free for the duration of the mortgage, provided by the Government through HomeBuy agents.

Two products will be offered, neither of which will charge a product fee.

6.79% fixed for five years
BoE base rate + 1.49% (7.24%) for five years

Andy Caton, Corporate Development Director at Yorkshire Building Society said: “The 32.5% total equity loan is an increase on the previous scheme, thereby increasing the customers’ buying power and reducing their costs. We have been delighted with the progress of OMHB so far and are firmly committed to offering potential buyers the best deal possible. Despite the increase in funding rates, we have been able to offer a product at a lower rate than the previous product and with no application fee. The five-year products provide stable monthly payments in those crucial early years of home ownership.”