Yorkshire sets precedent with new low five year fixed rate

Published: 27/07/2011

Yorkshire Building Society has thrown down the gauntlet to its competitors by reducing rates on two mortgage products for the second time this month.

The lender is now offering a two-year fixed deal at 2.59 per cent (down from 2.89 per cent) as well as an attractive five-year fixed rate of 3.49 per cent (down from 3.89 per cent).

Both deals come with a £995 fee and are available up to 75 per cent loan-to-value (LTV), or alternatively, customers can have the same deal with a reduced fee option of £95 and £250 cashback at a rate of 2.79 per cent for the two-year fixed and 3.69 per cent for the five-year deal.

Chris Smith, Group Direct Mortgage Manager, said:

“The fixed rates deals are particularly attractive and have been introduced in response to demand from borrowers wanting the security of fixing the same regular monthly mortgage repayment, at a time when their household budget continues to be squeezed.”¹

Chelsea Building Society, Nationwide and Woolwich (Barclays) are also offering competitive five-year fixed deals at a rate of 3.79 per cent (£1995 fee and 60 per cent LTV), 3.89 per cent (£999 fee and 70 per cent LTV) and 3.98 per cent (£999 fee and 70 per cent LTV) respectively.

Source:
¹Mortgage Strategy (July 2011)

Content correct at time of publication