by Gary Webber
13. January 2010 15:43
More January sales on mortgages as Yorkshire Building Society cuts interest by up to 0.60%
They must mean it when they say there are "signs of an increase in activity in the housing market", because Yorkshire Building Society are looking to welcome in thousands of new borrowers with a radically discounted mortgage line-up.
As well as across-the-board cuts in their interest rates, they've paid attention to mortgage product fees too: at £495 (or in some cases £0), chief executive Iain Cornish thinks their below-average fees could "help to make a big difference to customers". At a time when most competitors charge around £1,000, he's not kidding.
Highlights of the rate-cutting bonanza include:
- a 3-year fixed rate of 4.39% (≤75 per cent LTV, £495 fee) — that's 0.50% off the previous rate
- a 2-year tracker mortgage rate of 2.64% (BoE + 2.14%, ≤75 per cent LTV, £495 fee)
- Yorkshire BS's lowest ever fixed rate mortgage at 3.19% (≤75 per cent LTV) — only for 1 year, but the fee's just £195
The three-year option there is one of the best rate / fee packages on offer for borrowers with a 25 per cent deposit. Remortgage customers get free legal and valuation fees, and all borrowers can take advantage of overpayments, underpayments and payment holidays.
Following our recent story about building societies raising their standard variable rates, it's good to see Yorkshire Building Society getting attention for setting a different and more mortgage-friendly trend.
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