The Society has reduced the rates on its special First Time Buyer fixed rate mortgages, whilst still allowing new home owners to borrow the full amount of the property price without any hefty fees.
The new rates are:
* 5.60% (5.8% APR) fixed to 31/03/07
* 5.70% (5.8% APR) fixed to 31/03/09
Unusually for a product available up to 100% loan to value, there are no arrangement fees or mortgage indemnity premiums (MIGs) with these mortgages, and a contribution towards solicitor and valuation costs is also provided.
As with all Yorkshire mortgages accident, sickness and unemployment cover will be provided free of charge for the first 6 months and any amount of over payments are permitted without any charge, providing the whole loan is not repaid. An option for future underpayments and payment holidays is also standard on all Yorkshire mortgages.
Tanya Mills, spokesperson for Yorkshire Building Society said "Our research last year showed that many would-be home owners were often discouraged from buying their first home because of the initial costs involved. Our products have therefore been designed to ensure that any savings accumulated by the new borrowers can largely be used to furnish their first home."
