Clydesdale and Yorkshire Banks are offering to pay up to £1,000 of the first month’s repayment on a series of two and five-year fixed-rate mortgages both with loan-to-value of 85 per cent and 90 per cent.
The deal is offered in two versions, one with an arrangement fee and one without, and the offer is open until 28 November 2014.
Two-year residential fixes with LTVs of up to 85 per cent have a rate of 3.29 per cent, two-year fixes with LTVs of up to 90 per cent have a rate of 3.59 per cent. The five-year fixes have a rate of 4.29 per cent up to 85 per cent LTV and 4.39 per cent for up to 90 per cent LTV.
A three-year fix for first-time buyers for LTVs of up to 90 per cent has a rate of 3.59 per cent.
The ‘no arrangement fee’ offer applies to the bank’s fee offer products. These products are not available to residential interest-only mortgages or mortgages of more than £1m. The cashback incentive element of the promotion is available for selected residential mortgages of more than £25,000.
PROVIDER VIEW
Steve Fletcher, head of Clydesdale and Yorkshire Banks Retail Network, said: “Whether you are moving into a new home or simply remortgaging we understand that everyone has different needs and requirements. Our new range of mortgages has been created to support homeowners with competitive rates, while we also pay your mortgage for a month.”
Mr Fletcher added: “Confidence continues to play a big part in buying a house, and this campaign is designed to give homeowners a boost. Saving a month of mortgage payments could help homeowners with new furniture or carrying out repairs and home improvements. The offer is available across our range of mortgage products from those looking to take their first step onto the property ladder, with a 95 per cent or 90 per cent LTV first-time buyer mortgage to those that are looking to fix their mortgage rate for a two- or five-year term.”
ADVISER VIEW
Paul Dorward, South-Yorkshire based mortgage adviser at Pad Financial, said “On the face of it the deal appears to be very competitive, with keen rates and the innovative feature of the first month’s mortgage payment being paid for the client.
“This is going to be particularly helpful for first-time buyers, who find themselves hit with costs such as solicitors’ fees and other costs, as well as the more practical aspects of actually furnishing their new homes.
“Of course, there is always more to take into account than just the rate when it comes to getting the right deal for a client. Now, like a lot of lenders, Clydesdale wants a lot of information on clients, but once it has it, it is very quick and efficient.”
CHARGES
£999 arrangement fee.
VERDICT
Clydesdale and Yorkshire have come up with an attractive combination of knocking out the first month’s repayment as well as eliminating the arrangement fee. This could be a killer combination for those looking for a good fixed-rate deal. The rate may not be the lowest on the market for two- and five-year fixes, but the other elements make it worth looking at.
