The new mortgages are both two-year products offering a discount from the Society’s standard variable mortgage rate (SVR). Borrowers have a choice of a fee-assisted discounted mortgage or a lower discounted rate with an initial product fee. Highlights of the two mortgages are shown below, with full product details in the attached appendix (.
The standard discount mortgage offers a 2% discount from the SVR for 2 years (current pay rate 4.40% ). As with many competitively priced mortgages there is a £495 product fee, but there are no other hidden costs, such as early repayment charges beyond the special rate period or compulsory insurances.
The fee assisted discount mortgage offers a 1.5% discount from the SVR for 2 years (current pay rate 4.90% ) without a product fee. There is also a 0.60% cashback or, for re-mortgages, free YBS legal service package and refund of basic valuation fee.
Both products are available to new and existing customers for mortgages up to 95% of the property value. Interest on all Yorkshire mortgages is charged daily ensuring borrowers get immediate benefit for all payments - this makes these products 0.15% cheaper on average than similar products calculating interest annually.
Rachel Court, Yorkshire’s Head of Mortgages said "There has been much speculation that interest rates will fall during 2006, with many experts predicting the first rate cut as early as February which may result in fixed rate mortgages becoming less popular, whilst variable rates become more attractive."
