New mortgage launched by Yorkshire Building Society

Date:Tuesday 10th November 2009
Author: Susanna Kavka

By Max Freedman

Yorkshire Building Society has unveiled plans to introduce a new stepped tracker mortgage which is tied to the Bank of England base rate of interest.

Available from November 13th, the product, with a 75 per cent loan-to-value, has a rate of 3.49 per cent above the Bank base rate.

In the second year, the rate will fall to 2.99 per cent above the base rate, and 1.49 per cent above the base rate in the third year.

Steve McAvan, senior product manager for mortgages with the company, said as the Bank base rate is currently at historically low levels, increases are expected in the next few years.

"This product will help protect customers from these rises as the stepped rate comes down throughout the term of the product," he added.

Remortgaging customers receive free legal fees and valuation. There is an additional product fee of £495.

This is one of several new products introduced by the building society recently, including the 18-month fixed-rate bond which offers three per cent AER with a deposit from £100.