Fix that mortgage

Out of the blue come Yorkshire Building Society with a five-year fix deal that will bowl you over.

For the five year time period, the fixed rate of 3.49 percent is the lowest ever, with an arrangement fee of £995. It shows that with the Bank Rate at a record low of 0.5 percent, lenders are finally passing on savings to their customers.

Melanie Bien, director at mortgage broker Private Finance, said: 'Just when it looked as though five-year fixes had fallen as low as they could, along comes a deal that breaks through the 3.5pc barrier.

'It's an incredible rate, reflecting the continued drop in money market rates and the fact that lenders are trying to drum up more business at the halfway point of the year.'

However, you will need a 25 percent deposit to be eligible for it, which will rule out many of us. Ms Bien said: 'While the 25 percent deposit requirement is not too onerous, it still means that many people won't qualify for this deal. But those with enough equity are unlikely to see much better pricing in coming weeks so should move quickly to secure it, rather than waiting for something better to come along.'

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