Yorkshire Building Society enters drop lock mortgage market

Yorkshire Building Society is launching two new products which will allow customers to switch to a fixed rate mortgage deal at no extra cost.

It is offering tracker rates of 2.29%, BoE+1.79%, with a £995 product fee, and a 2.49% rate with a £95 fee, BoE+1.99%.

Chris Smith, group direct product manager at Yorkshire, says:  “If a customer is undecided between a tracker rate and a fixed rate mortgage – this new drop-lock option gives them much more freedom when choosing a mortgage.

“For example if the Bank of England Base Rate remains low, then the borrower can choose to remain on their tracker product, enabling them to take advantage of the low interest rate – or if the Bank of England Base Rate looks set to increase they can move to a fixed rate product without charge.  It’s as simple as that.

“We understand that depending on the borrowers circumstances they may want to opt for the certainty that a fixed rate of interest provides and this product caters for that.”