Staggering new low mortgage rate from Yorkshire Building Society, how low can they go?
The mortgage war on who can offer the lowest rate has been hotting up for some time and Yorkshire Building Society is the latest one to throw their hat into the ring with a stunning two year fixed at an amazing 1.18% beating the recent HSBC offer of two years fixed at 1.9%
To qualify for the deal borrowers will have to put down a deposit of 35% compared to the HSBC deposit of 40% and also cough up a hefty £1,499 fee. What this means in reality is that borrowers will have to look very carefully at other rock bottom rates as these fees can mean a better deal may be found elsewhere.
Yorkshire are being very “chipper” about it and remark on the fact that they are a financially strong mutual which focuses on its members rather than external shareholders, this enables them to offer better rates, it is claimed. Another Building Society, Norwich and Peterborough, incidentally owned by Yorkshire, yesterday also launched two new low rate mortgages which are well worth considering. The two new mortgages, both come without fess, are a 65% loan to value mortgage which is two year fixed at 1.9% and as an alternative a 90% loan to value two-year fixed rate with a rate of 3.39% and as we have said are without fees. Further they include a free standard valuation and £200 cashback on completion available for both house purchase and re-mortgage customers.
So as we have said the mortgage field is intensifying and lenders have been vying with each other to top the best buy mortgage tables. In 2012 for example, the average five-year fixed rate for a borrower with a 25% deposit was 4.29% now there are five-year rates as low as 2.19% available, ten-year fixes for under 3% and this new Yorkshire two-year rate at just 1.18%.