Yorkshire Building Society has reduced the rate on its two-year variable mortgage by 0.40%, making it the lowest rate available in its sector.
This variable mortgage now has a highly competitive rate of 1.44% until 31.10.16 at a loan-to-value (LTV) of 65%. A low fee of £475 is payable.
Once the two-year term has expired, the rate will revert to an Existing Borrowers Rate of 4.99% for the remainder of the mortgage term.
The mortgage is available to first-time buyers, second-time buyers and those looking to remortgage. While there is no incentive package for applicants, borrowers do have the flexibility of making overpayments of up to 10% of the outstanding balance per year. Underpayments and payment holidays can also be made as long as they do not exceed the amount made in overpayments.
The mortgage is also available through Chelsea Building Society.
The rate reduction has set this mortgage apart from its rivals by making it the lowest one on offer for its term. Although there is no incentive package to entice borrowers, the low fee and the flexibility offered in repayments mean that this mortgage is an attractive choice for those with the right deposit.
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