The cheapest fixed rate mortgage ever to be launched in the UK has been unveiled by the Yorkshire Building Society.
The deal, available at 1.07%, raises the prospect of mortgages soon becoming available at under 1%.
The Yorkshire product is unlikely to be much help to first-time buyers. It is available to borrowers who have a 35% deposit and comes with a £1,369 fee.
Mike Regnier, Yorkshire Building Society’s chief commercial officer, said: “We are a responsible mutual lender which uses its financial strength to support its members rather than external shareholders.
“This means we can offer our members very competitive rates in order to enable them to buy the home of their choice.
“Earlier this year we launched a 1.18% mortgage, which was then our lowest-ever rate to date, and we are now very proud to better that by offering the UK’s lowest-ever two-year fixed rate mortgage of 1.07%.”
0.25% with a £5,000 arrangement fee will be next. I wonder when people will ‘catch themselves on’, do tha maths and work out the total payment over the term. Not as cheap now…?
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Think that’s a little unlikely although not impossible, considering arrangement fees are between £500 – £1500 already (and have been for some time) what promps you to suggest this now?
I think on a 0.25% deal and still a £5000 fee it still works out better than the current average of circa 4%
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Here’s the thing with Estate and Lettings agents having to now be totally transparent on their fees etc , should banks / building society’s etc be made to do the same and show the overall lending rate including the arrangement fees??
as im sure the average consumers only sees the lower % and doesn’t take into account the overall cost of the borrowing.
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