Beware hidden catch in drop-lock products Yorkshire is offering

Yorkshire Building Society recently revealed it was launching two products that will allow customers to switch to a fixed rate mortgage at no extra cost.

It should be made clear that the hidden catch with this drop-lock scheme is that you can only switch to the fixed rates from existing customer deals and not the new customer rates.

This means currently the best fixed two-year deal available when switching under this scheme is 3.79% which is considerably higher than the 2.99% rate available to new customers.

Alan Stirling