28
Apr
Headline rate 'not only mortgage consideration'
Those choosing a mortgage should not just look at the headline
rate, Yorkshire Building Society has argued.
The lender has published a table showing that its two-year
fixed-rate deal for house purchases - standing at 3.59 per cent -
is a higher headline rate than eight other competitors, including
the likes of HSBC, First Direct, Alliance & Leicester and
Cheltenham & Gloucester.
However, it stated, the deal becomes comparably cheaper when other
factors are considered, with its deal offering lower fees and a
cashback option, making the total payments over the duration
£12,676.
This is less than the £13,293 to be repaid on the HSBC
product, which has the lowest rate at 2.89 per cent.
Mortgage manager at the lender Tom Girling stated: "The headline
rate of a mortgage isn't necessarily an indication of what a
mortgage will actually cost the consumer."
Yorkshire Building Society announced a new capped tracker mortgage
yesterday, which will start at 2.69 per cent above the base rate
but not increase above 5.49 per cent, so as to shield borrowers
from future rises by the Bank of England.
