The two-year deal will be available from tomorrow, for both home buyers and people looking to re-mortgage.
It is the first time the building society, which is the second biggest building society in the UK after Nationwide, has offered a fixed rate mortgage of less than 1 per cent.
Financial website Moneyfacts.co.uk said the rate is the lowest fixed-rate currently on the market for the two-year period.
Borrowers wanting to take out the mortgage will need to stump up a £1,495 fee and they will also need to have a 40 per cent deposit.
Yorkshire’s new deal isn’t the only sub-1 per cent fixed-rate to have appeared on the market in recent months.
Rachel Springall, a finance expert at Moneyfacts, said an 18-month fixed-rate deal from Santander at 0.99 per cent was withdrawn from the market in February.
HSBC also had a two-year fix at 0.99 per cent which was withdrawn from the market in December. Is it any good?
Springall said: “It’s clear to see that there is still some fierce competition in the mortgage market, which will be music to the ears of borrowers hoping to secure a low fixed rate for over the next few years.”
She said that with any mortgage deal, it is important for borrowers to work out the overall cost, including any fees, to see if it is the best possible choice for them.
The 40 per cent deposit requirement may also be unattainable for many. On a £250,000 house, that’s a huge £100,000 deposit needed.
Recent data revealed that the average mortgage deposit for first-time buyers is just 17 per cent.
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