Updated Yorkshire Building Society has unveiled a new range of mortgage products in a bid to take...
Yorkshire Building Society has unveiled a new range of mortgage products in a bid to take advantage of the low interest rate now offered by the Bank of England.
Six products have been launched in total; two three-year fixed rate deals, two five-year fixed deals, a variable rate plan and a 100% variable rate arrangement, several of which offer either cashback or assistance with valuations or solicitors fees.
The three-year fixed rate product offers 4.99%, the three-year fixed "fee assist" offers 5.19%, the five-year fixed deal offers a rate of 5.49% and the five-year fixed "fee assist" is set at 5.69%.
All four fixed products carry a 95% LTV and have an early repayment clause of up to 10% for the term.
Both the three-year and five-year fixed products have a £295 completion fee, whereas the two "fee assist" products have no fees and a contribution to legal fees up to £250, except for existing borrowers who receive a reduced fee of £100.
The variable mortgage base is being adjusted to 5.85% with effect from October 28 and will carry a 95% LTV while the 100% mortgage carries an additional 0.25% interest (5.85% + 0.25% = 6.1%).
Minimum loan available on the 100% deal is £50,000, up to £150,000.
All products offer six months free mortgage protection insurance and have no compulsory insurances or early repayment charges beyond the special rate period.
Chris Parrish, group treasurer at Yorkshire Building Society says: "The Bank of England has cut interest rates six times this year and the events of September 11th have exacerbated concerns that the economy will continue to weaken.
"The financial markets are therefore expecting at least one more rate cut this year. Looking further ahead - once the immediate concerns recede - attention is likely to focus on a recovery and in that environment, the recent 'insurance policy' rate cuts are likely to be reversed," continues Parrish.
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