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Yorkshire offering 15-year fix at 5.24%

Yorkshire Building Society is offering a 15-year fixed-rate mortgage which allows an unlimited number of free overpayments of capital provided that the loan is not redeemed completely.

The mortgage is fixed at 5.24 per cent at 95 per cent loan to value. The redemption penalties are 5 per cent for the first five years, 4 per cent between years six and seven and 2 per cent thereafter if the loan is repaid in full.

If a borrower switches to another Yorkshire mortgage, even if it is smaller, there will be no charge.

First-time buyers do not have to pay the £325 arrangement fee and all borrowers get a £250 contribution to legal costs. They will also have the valuation refunded on completion.

Yorkshire is also offering two tracker loans. One is a two-year deal with a rate 0.25 per cent below the Bank of England&#39s base rate in the first year and 0.25 per cent above in the second year.

Currently, this would give rates of 3.5 per cent and 4 per cent respectively.

There is also a loan with a rate 0.15 per cent above the BoE rate in the first year and 0.65 per cent above in the second year, which currently gives respective rates of 3.9 per cent and 4.4 per cent.

Borrowers get a £250 contribution towards legal fees and will have the valuation refunded at completion.

Both loans revert to the society&#39s variable rate of 5.35 per cent after two years. Procuration fees vary depending on size of the loan.

Head of communications David Holmes says: “By combining stability of payments over a long period on the 15year fixed loan, with the ability to overpay without cost, borrowers can be confident that should their circumstances change, payments can be increased and they can transfer the loan to another property.”

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