Yorkshire Building Society: New tracker mortgage

Wednesday, 11 November 2009 12:00

Yorkshire Building Society has created a new tracker mortgage with a stepped interest rate which reduces over the term of the loan.

The three-year stepped tracker charges interest at the Bank of England's base rate plus 3.49 per cent in the first year.

In year two the rate drops to the base rate plus 2.49 per cent and in year three interest of 1.49 per cent over the Bank of England's rate applies.

Steve McAvan, senior product manager for mortgages at Yorkshire, said: "With UK interest rates still at historically low levels, it is widely expected the Bank of England base rate will increase over the next few years.

"This product will help protect customers from these rises as the stepped rate comes down throughout the term of the product."

The mortgage, which is for customers who need to borrow up to 75 per cent of their property's value, comes with a product fee of £495.

Borrowers who are remortgaging can benefit from a free valuation and free legal fees.

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