Yorkshire BS launch new low-rate track and fix mortgage
Thursday, 04 August 2011 03:46
Yorkshire Building Society has launched a new online mortgage product that allows customers to both track and fix their mortgage.
The move follows research carried out by Yorkshire Building Society that reveals that most customers would be unlikely to apply for a mortgage online in the future unless lenders offered an online application process.
The new product launched allows borrowers to track the Bank of England base rate for two years before switching to a fixed term for the final three years of a five year agreement. The deal is available to homeowners with a 60 per cent loan-to-value ratio.
The two-year tracker rate is 2.29 per cent (B of E base rate, 0.5 per cent + 1.79 per cent) until the 30th September 2013 and then reverting to a fixed rate of interest of 3.70 per cent until the 30th September 2016. The product fee is £995.
Commenting on the research, Chris Smith the Yorkshire's Group Product Manager said: "These figures are interesting as they show the number of people taking out a mortgage online is still very low. In part this may be due to the fact that other lenders have pulled out of the online market something which is in contrast to the Yorkshire as we continue to invest in our online services.
Chris continued; "We understand that the financial markets are changing. Many people have busy lifestyles and do not have time to go into a branch due to work or personal commitments - others simply prefer to do their transactions at home online. It is this demand that we are catering for.”
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