Yorkshire Building Society is developing new tracker and fixed-rate mortgages to help existing customers coming to the end of fixed-rate deals adjust to recent interest rate rises.
A tracker loan is set at base rate for the first year, base rate plus 0.75 per cent in the second year and base rate plus 1 per cent in the third year. The fee is £325.
A fee-free tracker is available at base rate plus 0.2 per cent in the first year, base plus 0.95 per cent in the second year and base plus 1.2 per cent in the third year.
A fixed product with a fee of £325 is set at 4.79 per cent in year one, 5.79 per cent in year two and 6.79 per cent in year three. A fee-free fixed mortgage is available at 4.99 per cent in the first year, 5.99 per cent in the second year and 6.99 per cent in the third year.
The new deals are expected to be available in Nov-ember or December.
Head of mortgages Rachel Court says: “The rise in rates has meant that borrowers coming to the end of two-year fixed deals will be faced with a big jump in their repayments. To help borrowers through this difficult period, we have introduced a range of fixed and tracker products which have a stepped interest rate to minimise the impact of rising rates.”