Better mortgage deal for buyers with big deposits

Tuesday, 18 December 2007 12:00

Buyers with bigger deposits are set to benefit from a range of new mortgages being unveiled today by Yorkshire Building Society.

The fixed rate products offer homemovers and remortgagers the choice of a standard arrangement fee of £999 or a higher rate without a fee to help with legal and valuation costs.

Rates on the four new mortgages range between 5.49 per cent and 6.29 per cent. These are fixed irrespective of term to enable borrowers to choose the length of the deal rather than selecting purely on price.

Tanya Jackson of Yorkshire Building Society said: "With this range we are providing the option of a lower rate for customers with a bigger deposit.

"The majority of our customers do have a deposit of more than 25 per cent of the property they are mortgaging against, so we expect this to change to appeal to many applicants."

The 5.49 per cent and 5.69 per cent fixed rate mortgages are available for two, three, five and ten years and both have an arrangement fee of £999.

In addition the 5.49 per cent option is available for up to 75 per cent of the property while the 5.69 per cent mortgage is for up to 95 per cent of the property value.

And the 6.39 per cent and 6.29 per cent fixed rate mortgages are available for two, three or five years and 10 years respectively.

There is no arrangement fee for either and they offer the incentive of a 0.5 per cent cashback for house purchase or free valuation and legal service for remortgage.

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