Yorkshire Building Society has followed other lenders in igniting hope for the housing market as it reduces its mortgage rates by as much as 0.50 per cent.
Until recently, mortgage
rates had hit record highs as lenders restricted their criteria in fear of their financial safety. However, in the past week, a number of lenders have slashed mortgage rates
, including Nationwide and Halifax, signalling that there may be light at the end of the tunnel.
In response to other lenders becoming more competitive, Yorkshire Building Society has launched a range of revised products, including a 4.99 per cent two year fixed rate mortgage
that offers a rate lower than the base rate in exchange for a three per cent arrangement fee.
The Building Society offers a fee free alternative in exchange for a higher interest rate of 6.79 per cent. Speaking of the new mortgage products, Tom Girling, product manager for mortgages at Yorkshire Building Society, said:
"In the present climate with soaring petrol, utility and food costs, a number of borrowers are looking for the lowest possible monthly mortgage payments to help them survive financially. The new 4.99 per cent two year fixed rate deal is the lowest rate currently available and, whilst the fee is inevitably high, this can be added to the loan which keeps the pay rate down.
"We understand that this mortgage will not suit all borrowers, but it is offered as an option for those who may be finding that their monthly income is stretched to the limit. For borrowers who can afford a little more each month, we have mortgage options with lower fees and no fee products," he added.
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