The Yorkshire Building Society is launching the first fully flexible 10-year fixed rate mortgage with the cheapest ever 10-year rate on August 30 2002.
The fixed rate is 5.44% and is fully flexible allowing unlimited overpayments without any penalty charges. Underpayments and paymentholidays are also permitted without charge and, as with all Yorkshire'smortgages, interest will be calculated on a daily basis ensuring borrowers get the benefit of every payment from the day it is made.
In an attempt to help first time buyers onto the property ladder they are offering this mortgage to them without charging an arrangement fee and providing them with a free property valuation and assistance with legal costs. Six months free accident, sickness and unemployment insurance is also provided with all Yorkshire Building Society mortgages.
The mortgage is fully portable as well, allowing borrowers the flexibility to continue their mortgage if they move house during the first 10 years.
Iain Cornish, Yorkshire's general manager, marketing, says: “We recently completed some research into the public's views on mortgages and found that almost 60% said they would prefer to have one mortgage throughout the whole mortgage term as it is too much effort to regularly switch mortgages or lenders. I think this research, together with feedback from our sales staff, who are indicating a demand for this type of product, show that in today's society people view their own time as a precious commodity and that finding a product offering long term value is important.”