Yorkshire Building Society launches 'lower rate' mortgage

Thursday, 28 January 2010 12:00

Yorkshire Building Society is launching a two-year fixed-rate mortgage which offers borrowers the chance to pay a lower rate in return for a higher fee.

The mortgage has a rate of 3.29 per cent, which is available to borrowers with a loan-to-value (LTV) of 60 per cent, and a fee of £1,195 fee.

It is being hailed by the building society as its lowest two-year fixed rate available direct to customers.

And it is being offered as an alternative to a current two-year fixed deal, which has a lower fee of £495 but a higher rate of 3.59 per cent.

Yorkshire Building Society said the higher fee version was likely to appeal to customers with larger loans but the lower fee, higher rate version would attract people with smaller loans.

Tom Girling, product manager for mortgages, said: "We've been cutting rates across our whole range over the past month, making mortgages even more affordable for those looking to get onto the property ladder or who are ready to remortgage onto a new more competitive deal."

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