Four building societies offer new 5pc mortgages
For those looking for a cheap mortgage deal, October marked a significant step in the right direction, when the second stage of the Governments’ Help to Buy scheme was launched three months early.
However, four UK building societies have now launched 5pc mortgage deals, offering potentially cheaper alternatives to the Government-led initiative. All of the building societies offering the deal are owned by the Yorkshire Building Society Group, and include Norwich and Peterborough, Barnsley, Chelsea and Yorkshire.
All of the deals have been made available to consumers on homes with a value of up to £500,000, and the lowest rate on a two year fixed deal starts at 4.89pc. There’s also a fee-free five year fix that that costs 5.29pc.
Another standout feature of these deals is that they are set to be rolled out to remortgage customers from 2014, while the Government scheme is only available to those buying a new home.
This has caused those in the industry to take notice, and Aaron Strutt of mortgage broker Trinity Financial, says that these offerings from the Yorkshire Building Society Group are now the most competitive in the market. He said, “These mortgages will provide a real boost to the first-time buyer mortgage market and will add real competition. If more lenders offered low deposit mortgages like these a few months ago, I don’t think the Government would have been so keen to launch Help to Buy.
“The lenders certainly need to be given a strong push to start offering low deposit mortgages, and it’s great news that they have come back to life again”, he continued.
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