The deals offer homeowners a tracker rate set at 0.25% below the Bank of England base rate, currently 4.50%. Borrowers just moving their mortgage will pay Bank of England base rate for two-years. A third two-year tracker mortgage, without any fees and offering a contribution to legal and valuation costs, is also available at Bank of England base rate plus 0.55%.
Ian Bullock, head of product development at Yorkshire, says: “All Yorkshire mortgages offer full flexibility with overpayments permitted without any early repayment charges. However, we have decided to launch this range with no charges even if the whole mortgage is repaid during the two-year tracker period. This gives borrowers the security of knowing they can switch mortgage deals at any time if they wish.”
Bullock adds: “As most analysts are now forecasting that the base rate is close to peaking with a reduction in rates expected as early as next year these products offer fantastic value to borrowers. We think it will be unlikely that many borrowers taking out one of these products will look for a better deal during the special rate period.”