The new products offer homebuyers one of the cheapest fixed rate mortgages currently available.
There are three new rates:
For home movers - 4.69% (reduced from 4.94%)
For re-mortgages - 4.74% (reduced from 5.34%)
These mortgages offer full flexibility permitting unlimited overpayments without charge (early repayment charges are only applicable on full mortgage redemption), daily interest and free accident, sickness and unemployment cover for the first six months of the loan. An arrangement fee of £495 is payable.
The third new rate is:
For all borrowers - 5.29% (reduced from 5.69%)
This mortgage has all the benefits outlined above and offers an offset facility. No arrangement fee is payable and either a 0.75% cashback (Offset version only) or an option of a free valuation and legal service is provided for those re-mortgaging.
Rachel Court, Yorkshire's Head of Mortgages said, "The MPC's decision not to move interest rates this month, coupled with the latest inflation report which hinted that rates may have peaked has led to a significant reduction in the money market rates. We have therefore been quick to react, ensuring we pass on this reduction to our customers".
Rachel continued, "With rate uncertainty many of our borrowers are telling us that they want the security of a fixed mortgage rate. We therefore expect demand for these new products to be high".
