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Lender says...

Yorkshire Building Society has reduced the rates on a number of its fixed rate mortgages by up to 0.5 per cent.

The lender has also launched a fixed rate deal with a low rate and high fee. The product has been designed to help borrowers keen to fix their mortgage payment as low as possible manage their monthly budgets.

The product is available at 4.99 per cent for two years with a maximum loan-to-value of 75 per cent.

There is a 3 per cent fee, of which 2.75 per cent can be added to the loan.

There is an early repayment charge of 3 per cent throughout the fixed rate period.

The product also offers an overpayment option to help borrowers repay the fee in a shorter time if they wish to.

Tom Girling, mortgages product manager for Yorkshire Building Society, said: "We understand this mortgage will not suit all borrowers but it is offered as an option for those who may be finding their monthly income is stretched to the limit."

Adviser says...

Michael Brill, director of Essex-based advisers Baronworth Investment Services Ltd, said: "The attractiveness of this deal depends on the mortgage loan amount.

"Between £150,000 and £200,000 it looks quite competitive but after £250,000 it starts to get a bit expensive. It depends on how much the low rate can offset the fee by."

Rating: 4/5 stars