Fixed-rate deals grow more appealing

0 Comments | Sunday Herald, The, Aug 17, 2008

YORKSHIRE building society is tempting borrowers with a new range of fixed-rate mortgages.

Homebuyers can fix for two, three or five years at 5.74per cent, as long as they can put down a deposit of at least 25per cent and stump up a fee of GBP995. There is also a 10-year fi x at 5.84per cent.

If you are remortgaging, you also get GBP500 cashback and a free standard valuation and legal service.

Yorkshire has cut its fi xes because money market rates - known as swap rates - have come down so lenders can buy their funds more cheaply. Tom Girling, Yorkshire's product manager for mortgages, says: "Swap prices have come down this week so we can pass on the benefits to hard-pressed borrowers."

The new loans stand up well against the competition. You can fix for two years with Newcastle building society at 5.65per cent, but would pay a slightly higher fee of GBP1098.

The best three-year deal is with First Direct at 5.95per cent. The fee is GBP598. If you want to fix for five years, Newcastle charges 5.60per cent, again with the GBP1098 fee.

Or there's a deal at 5.89per cent with Britannia for a fee of GBP999.

For more details of Yorkshire building society's mortgages, visit a branch or the website www. ybs. co. uk