Mortgages  

Yorkshire offers fee-free remortgage deals

Yorkshire offers fee-free remortgage deals

Yorkshire Building Society has introduced fee-free products to its remortgage range.

The offers will be exclusively available to borrowers looking to remortgage and come with no product fee, free legal fees and free standard valuations.  

Rates on the range start at 1.83 per cent for a two-year fixed rate mortgage at 60 per cent loan-to-value (LTV) and 2.13 per cent for those who have a 15 per cent deposit.

Janice Barber, mortgage manager at Yorkshire Building Society, said she hopes the remortgage options will appeal to customers looking to minimise the costs of remortgaging.

Yorkshire Building Society also introduced longer-term fixes to its fee-free range, as economic speculation of a potential bank rate rises.

The lender now offers five-year fixed rate mortgages at rates of 2.13 per cent at 60 per cent LTV, 2.23 per cent at 75 per cent LTV and 2.44 per cent at 85 per cent LTV.

In anticipation of the last bank rate rise in November 2017, the building society said it saw a surge in borrowers turning to fixed rate mortgages.

Ms Barber said: "As speculation about a Bank rate rise continues we wanted to give borrowers a new range of competitive longer-term options to consider if they want to take advantage of the peace of mind of knowing exactly what their monthly repayments will be until 2023."

Yorkshire Building Society joins an increasing number of lenders expanding their fee-free range, with recent research from Moneyfacts.co.uk showing fee-free products accounted for 40 per cent of the mortgage market in July 2018.

Nicholas Morrey, product technical manager at John Charcol, said fee-free options can be great for the right people in the right circumstances. 

He said: "Fee-free offers have been around for a long time and they tend to be good for headlines on adverts to grab customer's attention.

"But the main question is, what is best value? Options must be assessed on a case-by-case basis but as a general rule of thumb those borrowers with a lower mortgage will get the best value from a no-fee deal. 

"But when mortgage amounts begin to rise above the £150,000 mark, it is important to consider whether a lower interest rate with a product fee is the best value over the longer term."

rachel.addison@ft.com