You are here: Home - Mortgages - First Time Buyer - News -

Market-leading five-year mortgage fix launched

0
Written by: YourMoney.com
03/01/2018
Mutual Yorkshire Building Society has launched a competitive, five-year fix for buyers and remortgagors.

The 2.03% mortgage at 85% loan to value (LTV), has a £995 fee,  and is one of several five-year fixes added to its range. It is also offering a 65% LTV, five-year fixed rate mortgage at 1.77% and 1.97%. Both products come with a £1,495 fee.

While Principality Building Society offers a lower rate on its five-year product (2.00%), it comes with a £1,395 fee and no incentives. Therefore, based on a £200,000 loan amount over 25 years on the same LTV, the mutual’s 85% LTV mortgage offering is better placed in terms of true cost over the first year and fifth year, taking into consideration the rate and fee, according to Moneyfacts.

Borrowers with smaller deposits can take out a two-year fixed rate mortgage with the mutual, starting at a rate of 1.90% for those requiring 90% LTV. This mortgage comes with a £995 product fee and £250 cashback on completion.

Again, Moneyfacts said that while there is a lower rate in this category, offered by Loughborough Building Society at 1,89% (including free legals for remortgage customers), Yorkshire is still better in terms of true cost over the two-year period, taking into consideration the £250 cashback.

Janice Barber, mortgage manager at Yorkshire Building Society, said: “Our market-leading five-year fix in particular will appeal to those hoping to secure a low rate until 2023, but we’ve also made changes across our range to give a number of homebuyers and those remortgaging welcome news this January.”

Rachel Springall, finance expert at Moneyfacts, said: “Borrowers who have a 15% deposit or equity and are looking to secure their monthly mortgage payments over the longer-term will be delighted by this latest five-year fixed deal from Yorkshire Building Society thanks to its competitively low mortgage rate. It has a lower fee than the next cheapest deal on the market so it could be a more cost-effective choice depending on the loan size.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2361379-home-buyers2
Thousands of first-time buyers benefit from stamp duty cut

Around 16,000 first-time buyers have saved money on their stamp duty bill in the six weeks since the government’s property...

Close