LOWEST EVER MORTGAGE RATE OF 0.89% VARIABLE MADE AVAILABLE BY YORKSHIRE BUILDING SOCIETY
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
21 April 2017
Bank rate change: On 2 November 2017, the Bank of England announced that the Bank Base Rate would increase with immediate effect from 0.25% to 0.50%. Find out more
Yorkshire Building Society is launching a mortgage with the lowest interest rate ever available in the UK at 0.89%.
The new 0.89% product is a two year variable mortgage with a discount of 3.85% from the Society’s Standard Variable Rate (SVR), which is currently 4.74%, and is available for anyone borrowing up to 65% of the value of their property.
The rate is collared at 0.00% which means the minimum interest rate charged during the discount period will not fall below 0.00% should the SVR reduce in the two year variable period. The rate would rise should the SVR be increased.
Early repayment charges of 1% apply throughout the discounted variable rate period. The product is available on loans of between £25,001 and £5m. It has a product fee of £1,495 and a fee of £90 is payable on redemption of the mortgage.
Based on an assumed completion date of 31/08/17, a mortgage of £349,000 payable over 26 years initially on 0.89% variable (YBS Standard Variable Rate -3.85%) until 31/08/19 followed by our Standard Variable Rate, currently 4.74%, for the remaining 24 years would require 24 monthly payments of £1,253.02 and 288 monthly payments of £1,889.13.
The total amount payable would be £576,086.92 made up of the loan amount plus interest of £225,141.92 and a standard valuation fee of £450 and a product fee of £1,495.
The overall cost for comparison is 4.2% APRC.
Note: What you will pay may vary from this and will depend on your personal circumstances.
James Farrow, Senior Mortgage Manager at Yorkshire Building Society, said:
We are very pleased to offer borrowers the lowest mortgage rate ever available.
The cost of funding has fallen in recent weeks and as a financially strong building society with no external shareholders to satisfy we have the ability to pass this on to borrowers.
Rachel Springall, Finance Expert at Moneyfacts, said:
It’s fantastic to see such low rates on offer from Yorkshire Building Society and the choice between variable or fixed deal will appeal to different types of borrowers. Those looking for more flexibility over the shorter term may prefer a discounted deal, but those looking for some security could choose the fixed rate.”
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