Yorkshire sets precedent with new low five year fixed rate
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.
¹Mortgage Strategy (July 2011)
Content correct at time of publication