Two new 25 year fixed-rate mortgages have been launched by Yorkshire Building Society with rates of 6.29% and 6.49%.
The mortgages, available from Wednesday 15th August, offer borrowers the security of fixed mortgage payments as well flexibility as borrowers are able to choose how flexible they want their mortgages to be.
The new products differ from similar offerings on the market as there is the option to have early repayment charges ending after just five years and customers can choose a lower monthly rate with early repayment charges of 3% applicable for the first 10 years. Other main features include a one-off product fee of £595, flexibility to overpay by ten per cent each year without charge. The mortgages are also available for up to 90% of the property value and are fully portable should the borrower move home.
Despite many people finding it hard to commit to a long-term fixed-rate mortgage, Yorkshire has noted a considerable increase in sales of five and ten year fixed rates over the last year. However, funding for the new products is limited so it is advisable to make an early application.
Yorkshire’s Chief Executive Iain Cornish explains: “Our new products support the Chancellor’s desire to boost the supply, and take up, of long term fixed rate loans whilst giving customers real choices when considering these products. Whilst our 25 year fixed rate mortgages are available for both house purchase and re-mortgages, these products are particularly good for first time buyers.
“They shouldn’t be put off by the longevity of the loan, the mortgage is fixed for 25 years but it’s portable and can move home as often as the customers want to. The one thing that is almost guaranteed for first time buyers is that they will have a mortgage for the next 25 years!”
The new long term fixed rate mortgages are only available through Yorkshire’s national network of 131 branches.
Find out more about Yorkshire Building Society Mortgages