Yorkshire Building Society’s new five-year fixed-rate mortgage has topped the Which? Best Rate tables
Yorkshire Building Society has launched a new range of five-year fixed-rate mortgages which includes some chart-topping deals. The deals are available to movers and those looking to re-mortgage, but you’ll need a deposit of 15% at least, and 25% to get the very best deals.
The lowest rate available is 4.15% with a £995 fee, available for those with a 25 per cent deposit. You can instead opt for a slightly higher rate and a lower fee which can work out cheaper, depending on how much you’re borrowing. Yorkshire Building Society says the 4.15 per cent deal is the lowest five-year fixed rate it has offered since 2003.
Fixed rate mortgages falling
Yorkshire Building Society is not alone in reducing its fixed rate mortgages. Many lenders have been reducing their rates recently. Back in January the best five year fixed rate mortgages hovered just below 5% compared to around 4.15% to 4.35% now.
But the best rates are still reserved for those with a hefty deposit. The best five-year fixed-rates for those with just a 10% deposit still cost around 6%.
Which? Best Rate
Which? calculates the best value mortgages based on total cost which takes account of the interest and fees. For those with a large deposit of 25% or more the best value five-year fixed-rate mortgage, based on a £200,000 property with a £100,000 repayment mortgage over 25 years, is the 4.35% mortgage from Yorkshire Building Society. It has a £435 fee but pays a £250 cashback on completion and has a free valuation and legal fees for those re-mortgaging. The deal is only available direct from the lender, not through a mortgage broker.
Melanie Green, Principal Money Researcher at Which? says: ‘Always compare mortgages on total cost, not just the interest rate as the fees can make a lot of difference to the overall cost of the deal’.
If you’re looking for a new mortgage take a look at the Which? mortgage calculator which lets you enter your own details and compare the whole market.
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