Yorkshire Building Society Launches Rollover Mortgage
Yorkshire Building Society, second largest provider of mortgages in the UK, has released a new deal that is aimed at borrowers who have nearly paid off their total loan.
According to the building society, the 'Rollover Mortgage' is the first product of its kind. It is targeted specifically towards people who are nearing the term of their mortgage and are nearly debt free.
Borrowers will be given a rate of 2.69 per cent, and the product is fixed for one year. When this deal comes to an end they will be given the opportunity to fix their mortgage for another year, take out a different deal or simply switch to the building society's standard variable rate, currently set at 4.99 per cent.
The Rollover mortgage comes with free legal assistance as well as free home insurance for one year, but includes an arrangement fee of £495. However, the product can only be taken by borrowers who still have £25,001 or more outstanding on the balance of their mortgage – although this must still be lower than 35 per cent of the total value of their property.
Tom Girling, product manager for mortgages at Yorkshire Building Society, told the Press Association website: "Borrowers entering the final years of their mortgage often have little option other than to fix onto a new deal and face hefty early repayment charges if they need to redeem their loan, or have to remain sitting on their lender's SVR until their mortgage ends. We wanted to create a product that offered a fantastic rate, short-term security and the flexibility to assess your options each year."
Mortgages news posted by Garry on 06 July 2010
