THE Yorkshire Building Society has launched a range of new two and five-year fixed rate mortgages. The products allow borrowers to choose either a lower rate or a fee-free product with an initial cashback.

Two-year fixed rate mortgages.

* 4.59 per cent fixed rate/application fee £295.

* 4.99 per cent fixed rate/no application fee and £500 cashback.

Five-year fixed rate mortgage.

* 5.35 per cent fixed rate/application fee £295.

* 5.59 per cent fixed rate/no application fee and £500 cashback.

All these mortgages, which are available for house purchase and remortgages up to 95 per cent of the property value, are flexible, calculating interest on a daily basis and allowing overpayments without penalty at any time. There are no early redemption charges beyond the special rate period.

At the end of the fixed rate period the mortgages will revert to the society's variable mortgage rate.

Iain Cornish, Yorkshire's general manager, corporate affairs, said: "These new products offer borrowers the security of knowing exactly what their mortgage payments will be over the term."