Borrowers hunt for longer-term mortgages to ‘see them through Brexit and beyond’

A building society has launched a mortgage deal with a market-leading rate following demand for longer-term home loans which will see borrowers through “Brexit and beyond”.

The five-year fixed-rate deal at 2.01% for people with a 15% deposit is being offered by Yorkshire Building Society.

As at March 12, the rate is market-leading for borrowers with this deposit size, according to financial information website Moneyfacts.

But, to get their hands on the loan, borrowers will need to stump up a £1,995 “completion fee”.

The building society does have fee-free options available with a higher rate.

The Yorkshire saw a 44% increase in the number of borrowers taking out a five-year fixed-rate mortgage in December 2018, compared with December 2017.

Charles Mungroo, senior mortgage manager at Yorkshire Building Society, said: “Amid continued political uncertainty we’re seeing borrowers keen to secure new longer-term deals that will see them through Brexit and beyond.

“Our five and seven-year fixed-rate mortgages in particular are proving popular, which is why we’re responding to demand and giving people more choice with a new range of competitive mortgages.”

Rachel Springall, a finance expert at Moneyfacts.co.uk, said: “During times of economic uncertainty, borrowers may well be considering a long-term fixed mortgage for peace of mind.

“This deal is currently priced as the lowest in its sector, but as with any deal, borrowers would be wise to work out the overall true cost of any mortgage before they commit.”

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