New 10 Year Fixed Rate Mortgage From Yorkshire Building Society

Yorkshire Building Society are offering a 10 year best buy fixed rate mortgage deal for borrowers moving home or looking to remortgage.

The best buy fixed rate mortgage deal requires a 25% deposit and offers a rate of 4.99% with a fee of £995.

Another similar mortgage is available which offers free legal and valuation costs for those remortgaging or a free valuation and £250 cashback for those moving home. The interest rate for this is 5.09%.

Tom Girling, Product Manager for Mortgages at the Yorkshire commented: “This product presents a fantastic opportunity for borrowers looking for long-term value, protection from future interest rate rises and piece of mind when it comes to their mortgage payments.”

He added “Over the last ten years the average mortgage standard variable rate across the market has been 6.2%* so our new range of ten-year products offer great value.”

The new mortgages are some 0.3% cheaper than the next best 10-year deal available.

You can apply for these mortgages at Yorkshire’s branches or on online on their website – using an award winning paperless application process.

It’s interesting to see this new product enter into the long term fixed rate mortgage market, a market that currently only comprises a handful of such products – a rather different story to that of a few years ago when there were a large number of such products available, with terms up to 30 years.

Many will consider a long term fix on their mortgage a step too far but at under 5% this is a competitive rate and on the positive does cover off against a very uncertain mortgage market and the state of the UK economy. That said in the short term at least many will see shorter term fixed rate mortgages and tracker mortgages at better rates – but how long will that be the case?

Obviously you have to make your own decisions based on your own specific circumstances, seeking professional advice as required.

Yorkshire Building Society is the second largest building society in the UK and incorporates the Chelsea Building Society and Barnsley Building Society brands.

*Based on data from Bank of England Statistics showing the average quoted household interest rates May 2000 to May 2010.