Yorkshire Building Society reduces mortgage rates

From today, Yorkshire Building Society is reducing the rates on many of its fixed rate mortgages by up to 0.50% and launching a new low fixed rate deal with a higher fee.

The Society's choice of fixed rate mortgages includes two, three, five and ten year products both with and without fees, which are shown in the attached Appendix.

As inflation costs rise, Yorkshire Building Society is launching a new 4.99% two year fixed rate mortgage with a 3% fee, of which 2.75% can be added to the loan even if the maximum 75% loan to value has been borrowed. This new deal, with a minimum loan value of £75,000, has been designed to help borrowers who want to fix their mortgage payments as low as possible to help them manage their monthly budgets.

Tom Girling, Yorkshire's product manager for mortgages said: "In the present climate with soaring petrol, utility and food costs, a number of borrowers are looking for the lowest possible monthly mortgage payments to help them survive financially. The new 4.99% two year fixed rate deal is the lowest rate currently available and, whilst the fee is inevitably high, this can be added to the loan which keeps the pay rate down. The mortgage also offers an overpayment option should borrowers find themselves able to increase their monthly payments and therefore repay the fee in a shorter time than the full remaining mortgage term.

"We understand that this mortgage will not suit all borrowers, but it is offered as an option for those who may be finding that their monthly income is stretched to the limit. For borrowers who can afford a little more each month, we have mortgage options with lower fees and no fee products."

For more information, visit ybs.co.uk