Yorkshire launches mortgage with 1.14% rate

Yorkshire launches mortgage with 1.14% rate

Yorkshire Building Society today (19 February) launched a two-year fixed rate mortgage at 1.14 per cent.

The mortgage is available for those with a deposit of 35 per cent or more, and comes with a £1,345 product fee.

It is available on remortgages and house purchases.

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Rachel Springall, finance expert at Moneyfacts, said the deal also allows borrowers to overpay their mortgage which will be great news for those who want to reduce their loan more quickly.

She said: “Overpaying a mortgage while on a low rate is a smart move as borrowers can build up more equity and it can enable customers to borrow less in the future if they wish to re-finance.”

Matthew Harris, director of Harris Independent Financial Advice in Edinburgh, said: “It is good to have this rate but it will only make sense for people with relatively large mortgages. People with smaller mortgages should do the maths.

“Similar rates are available. The problem is they always come with a large initial fee. That is going to still make sense paying for people who are getting a relatively large mortgage of £200,000 plus but people getting smaller mortgages need to be careful to work out the total costs.

“They may be better off taking a product with no fee and a higher interest rate.”