New mortgage offers low repayment opportunity

Yorkshire Building Society is introducing a mortgage deal aimed at borrowers looking to reduce their monthly payments.

Amid an economic climate of soaring food and fuel prices, the building society claims the product can help consumers manage their budgets, though it comes with a high handling fee.

The mortgage has a fixed interest rate of 4.99 per cent for the first two years, with a three per cent fee.

Product manager for mortgages Tom Girling said: “We understand that this mortgage will not suit all borrowers, but it is offered as an option for those who may be finding that their monthly income is stretched to limit.”

He added that the deal represents the lowest rate on the market and that the high fee can be managed by including it in loan payments.

Earlier this month Abbey launched a ten-year fixed-rate product, as its research revealed that many people prefer long-term deals.

© Adfero Ltd

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