New Innovative Product for Remortgage Customers
Most homeowners with little left to pay on their loans do not remortgage. The problem especially lies with the fact that most lenders have minimums for a lender switch and fees and products aren’t attractive for that situation. Yorkshire Building Society has come up with an innovative product to cater to these homeowners.
The product is a rollover fixed rate remortgage. The rate is fixed for one year and leaves customers with several choices at the end of the year: fix for another year at the prevailing rate, switch to a standard variable, or remortgage with no penalty. The deal continues for the duration of the loan. This type of remortgage is due to be copied by other lenders. The minimum loan size on the YBS deal is 25,000 pounds. The rate is fixed at 2.69 per cent and there is a 495 pound arrangement fee and is available to those wishing to borrow only 35 per cent of the property’s value. Another attractive offer by Yorkshire is that the remortgage has free legal work, free valuation, free buildings and home contents insurance for one year, and only a 1 per cent penalty change if the borrower wants to abandon during the fixed-rate period.