Building society launches new 4.99% mortgage

Yorkshire Building Society has announced that it is launching a new mortgage deal and cutting the rates on a number of other products within its range.

The firm is reducing rates on its two, three, five and ten-year fixed-rate products, while offering customers a new two-year fixed-rate mortgage with a rate of 4.99 per cent.

However, the mortgage has a three per cent fee.

Commenting on the move, Tom Girling, product manager for mortgages at Yorkshire Building Society, said given that the new mortgage has one of the lowest rates available, the fee is "inevitable high".

"We understand that this mortgage will not suit all borrowers, but it is offered as an option for those who may be finding that their monthly income is stretched to the limit," he added.

In related news, Peter Bolton King, chief executive of the National Association of Estate Agents has called on the government to take action to address the problems within the housing market.

Mr Bolton King urged the Bank of England to "pump more liquidity into the mortgage markets" to make finding funding easier.

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