Yorkshire Building Society will be offering good news to those seeking to buy a home at a fixed mortgage rate. The Society took 0.30 per cent off of its 10-year fixed-rate mortgage deal.
Those who pay a 25 per cent deposit will have the benefit of a 4.99 per cent fixed rate for the first 10 years of their repayments.
Accord, a part of Yorkshire Building Society, offered a similar deal, at a 5.24 per cent 10-year fixed rate for a 25 per cent deposit. This is good news not only in terms of the recovering property market, but also in terms of the base rate at the Bank of England, which is at the historic low of 0.5 per cent. Furthermore, it is most likely that interest rates will rise in the following years, making a fixed rate for the next 10 years highly attractive.
This is Money, however, cautioned future home buyers to carefully consider additional fees when taking out a mortgage. Together with the 25 per cent deposit, for example, Accord clients will pay a ?1,995 fee for a 5.24 per cent fixed rate, while the 4.99 per cent fixed rate offered by Yorkshire involves a fee of ?995.
Yorkshire is also working on a 5.09 per cent fixed-rate mortgage product. This deal will include free legal and valuation costs for re-mortgaging clients, and a cashback offer of ?250 for clients who are moving.
Yorkshire?s new 10-year products are believed to be 0.3 per cent cheaper than the best similar deals offered by other providers at the time of writing.
