View more on these topics

Product matters

Yorkshire Building Society&#39s 5.44 per cent 10-year flexible fix is not the cheapest rate in the 10-year fixed-rate market but it does offer the best value for anyone wanting a long-term fix.

The longer the term of a deal, the more important it is that it offers maximum flexibility and Yorkshire scores well.

A key benefit with all Yorkshire&#39s mortgages is that as well as being on daily interest and flexible, with no compulsory insurance, they allow unlimited penalty-free part-repayments, with the early redemption charges only applied on full redemption. Any overpayments can, however, only be used to take payment holidays or underpayments, which is the only shortcoming, in that drawdowns are not allowed. But a further advance facility is available up to 75 per cent LTV on, effectively, a choice of rates available at the time.

I do not expect to be knocked down in the rush for this mortgage despite a cashback of up to £500. It has strong competition from Bank of Ireland with a non-flexible seven-year fix at 4.99 per cent and several five-year fixes, including Woolwich&#39s flexible 4.99 per cent and the psyche of the British mortgage buyer is focused on shorter-term deals with lower headline rates.

Despite Yorkshire&#39s generous policy on partial early repayments, borrowers have become less worried about sharp upward interest rate movements and see less need to protect themselves from that possibility. SWAP rates have fallen by nearly 0.2 per cent since this mortgage was priced and if they fall enough to allow a reprice below the 5 per cent level, the mortgage will sell well.

Ray Boulger is a senior technical manager at Charcol

Recommended

E-learn and earn

The financial services sector has seen many mergers and acquisitions in recent years, with some of the biggest and best-known financial brands in Europe joining forces in an increasingly competitive market environment. Financial institutions are constantly having to update, rebuild and integrate IT systems to create a solid infrastructure that will support their customer base […]

Aegon to cut 600 staff

Aegon UK is looking to lose up to 600 jobs to balance out its purchase of IFAs in a bid to become a top 5 player. Most of the jobs are likely to go at its Edinburgh headquarters. It says investments in technology will lead to cost savings of £40m by next year.Aegon UK group […]

NDF offers remedy to loss

NDF Administration is aiming the NDF protected growth plan at investors who want to recoup losses made in the current environment of low equity returns.This guaranteed equity bond has a five-year term and offers investors 100 per cent of the growth in the FTSE 100 index. All of the original capital is returned to investors […]

IFA caution shows in Fidelity sales

Fidelity believes IFAs are more bearish about the stockmarket than their clients in the light of figures which show its adviser sales have fallen by comparison with its direct channel. The company claims there are signs of significant divergence between IFA and consumer confidence as its month-on-month and year-on-year figures show direct sales rising relative […]

Health - thumbnail

Healthcare predictions for 2015 from Jelf Employee Benefits

The continuing fall-out from the Competition and Markets Authority’s (CMA’s) review, the rise of the private GP and digital engagement will be the primary focuses in the private healthcare industry during 2015, according to Iain Laws, managing director, healthcare and group risk, at Jelf Employee Benefits.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com