The product has a rate of 6.19 per cent for the first five years, which reverts to the Society’s standard variable rate of 6.90 per cent after the term of the deal.
It comprises 75 per cent of a conventional mortgage and the remaining 25 per cent split between the government and lender, which is interest free. There is a £395 fee and early repayment charges of 5 per cent in the first three years, 4 per cent in year four, and 3 per cent in year five.
The tracker product will continue as before, except the 6.50 per cent interest cap for the first two years will not be provided as it is no longer necessary with the fixed rate option.
Roy New, a sole broker, said: “While the rate is not fantastic, I’m certain there are people out there that it will be beneficial to.”
Andy Caton, corporate development director at Yorkshire, commented: “We believe that the scheme is an innovative route for new homeowners to buy the house that they want to live in, in the area that they want to live. We’ve been delighted with the take-up of the scheme and want to respond positively to the needs of customers.”
