The deal, which will be available from Monday 22nd August, offers borrowers a tracker rate set at just 0.45% above Bank of England base rate, currently 4.95%.
Homeowners choosing this product will not only benefit from a great rate but also unlimited overpayments and no early repayment charges, daily interest calculations and free accident, sickness and unemployment cover for the first six months. There is an application fee of £495.
The simplicity of Yorkshire’s offset account remains, with just a straightforward link between a mortgage and savings accounts. The key advantage of offsetting is that homeowners can utilise their savings to reduce their mortgage payments, or mortgage term, in a tax-efficient way, whilst retaining their savings for a rainy day.
Borrowers who want a tracker offset without any initial set up costs can still choose Yorkshire’s standard offset which is offered on a ‘fee-free’ basis with no application fee, 0.60% cashback or free legal service and refund of valuation for re-mortgage customers. The standard tracker offset rate is Bank of England base rate plus 0.75% for the full term of the mortgage, currently 5.25%
Yorkshire also offers tracker offset accounts, for borrowers who want security of payments for 2 or 5 years.
Rachel Court Head of Mortgages at Yorkshire Building Society said: "The offset mortgage market is growing rapidly as more people become aware of how they can benefit from combining their borrowings and savings.
"Like everything, different borrowers want different features and our range of offsets — tracker and fixed rates, fee assist or lower rate — shows that Yorkshire is still leading the pack in this field."
