New tracker mortgage aimed at curbing base rate rise

A new tracker deal that projects future rises in the Bank of England base rate has been launched.

Yorkshire Building Society has revealed that its new three-year deal will start off at base rate plus 3.49 per cent, with this additional figure dropping to 2.49 per cent a year later and then 1.49 per cent 12 months after that.

It has been designed this way in anticipation of future increases in the base rate, which may arise as the UK moves out of recession and changes are required to prevent a return of inflationary pressures in a growing economy.

Senior product manager for mortgages Steve McAvan stated: “This product will help protect customers from these rises as the stepped rate comes down throughout the term of the product.”

Those seeking remortgages have been offered the incentive of having no valuation or legal fees charged.

Another lender offering new homebuyer loans is Abbey, whose latest products include a 90 per cent loan-value tracker at 5.99 per cent over three years for house purchases.

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