Yorkshire cuts cost of 5 year fixed rate mortgage

Yorkshire Building Society is cutting the cost of five year fixed rate mortgages to 3.99% for borrowers wanting to fix the bill for their biggest monthly outgoing.

With speculation about the likelihood of interest rate rises from the Bank of England's current historic low, mortgage borrowers may prefer to opt for a 5 year fixed rate mortgage to give them certainty about their monthly repayments.

The Yorkshire is cutting its five year fixed rate mortgage to a best buy rate of 3.99%, with a £995 fee. Borrowers who want to reduce their upfront costs can opt for a rate of 4.39% and a £95 fee.

The five year fixed rate deals are available at 75% LTV and include offset options for borrowers who want to keep their savings but bring down the cost of their mortgage.

Yorkshire's Group Direct Mortgage Manager Chris Smith said: "Choosing a fixed rate mortgage gives borrowers peace of mind about their repayments and helps them to budget each month.

"The new five year fixed rate deals are highly competitive and complement our existing range of fixed rate mortgage products, which are available for terms between two years and 10 years."

Borrowers can use the Yorkshire's online mortgage checker to understand better how interest rate rises could increase their monthly payments and the potential benefits of fixing their rate for a specific term.