The deal offers an initial fixed rate of 2.69% for the first year, carries a low product fee of only £495 and comes with free legal assistance and a free valuation.
In addition, the deal also includes one year’s free You Choose home insurance, the Society’s flexible buildings and contents cover.
At the end of each year, borrowers will be notified of the new fixed rate offered for the following year of their mortgage and will automatically ‘rollover’ onto that rate, or alternatively they can choose to transfer their loan to either the society’s SVR or another remortgage deal.
The product carries a 1% early repayment charge for those who may wish to come out of the deal within the fixed rate period, however, no early repayment charge will apply if a borrower chooses to switch at the end of a rollover period.
Tom Girling, product manager for mortgages at the Yorkshire, said: “Borrowers entering the final years of their mortgage often have little option other than to fix onto a new deal and face hefty early repayment charges if they need to redeem their loan, or have to remain sitting on their lender’s SVR until their mortgage ends.
“We wanted to create a product that offered a fantastic rate, short-term security and the flexibility to assess your options each year. When you take into consideration the free home insurance, free legal assistance and free valuation, we feel the Rollover Mortgage will be a great value option for many borrowers who need only a small mortgage in relation to their property’s value.”