YORKSHIRE Building Society is launching two new mortgages, which, it claims, are the cheapest fixed rates available.

In addition to their headline rates, the new products offer free accident, sickness and unemployment cover for six months, and are fully flexible with daily interest calculations and under/overpayments permitted without penalty.

At the end of the fixed rate period, each mortgage will revert to the Society’s variable mortgage base rate, which is currently 5.45 per cent. There are no early repayment charges beyond the special rate period.

Full product details are: two-year fixed rate 4.69 per cent - until October 31, 2004. Maximum 75 per cent loan to value. Arrangement fee of £325. Early repayment charges of three per cent in years one and two.

Five year fixed rate 6.39 per cent - for five years from completion. Maximum 75 per cent loan to value. Arrangement fee £325. Early repayment charges of five/five/five/four/three per cent in five years.

Yorkshire Building Society is the third biggest building society with 131 branches and 97 agencies.