The second largest mutual lender in the UK, Yorkshire Building Society, has recently launched the lowest mortgage rate in the country to those who are re-mortgaging.
The deal offers a “discounted” rate of 0.98%, which tracks the Standard Variable Rate of the lender, which is currently 4.74%, providing a discount of 3.76%. The rate will either go up or down if the SVR alters, according to whether it increases or falls. However, there is a fee attached to the product of £1,495, and if the borrower repays early, there is a penalty charge of 1%.
During the year, mortgage rates have been falling due to the reduction of the Bank of England base rate to 0.25% in August. Some experts have also speculated that the base rate may be cut by the Bank of England yet again, causing rates to fall even lower.
The Yorkshire Building Society is just one lender that is reducing interest rates for high value mortgages. Its deal is available for mortgages up to £5m. Barclays and Santander are among the other lenders which have reduced their mortgage rates for high value borrowing.
Every lender has varying fees, with some offering incentives like cash back. Trying to decide which mortgage product is the best value and most suitable can be a complex process, which is why a CeMAP mortgage adviser is often the best option. They will help borrowers calculate the true cost of a mortgage over the term, factoring in the hidden costs.