Yorkshire Building Society has unveiled its new ‘rollover mortgage,’ a rolling one-year fixed rate product aimed at those who are coming to the final years of their mortgage and those who need to borrow less than 35% of the value of their home.

The deal offers an initial fixed rate of 2.69% for the first year, carries a product fee of £495 and comes with free legal assistance and a free valuation. In addition, the deal also includes one year’s free You Choose home insurance, the Society’s buildings and contents cover.

The deal is available to wishing to remortgage to the Society and offers a rate fixed for one year. At the end of each year, borrowers will be notified of the new fixed rate offered for the following year of their mortgage and will automatically ‘rollover’ onto that rate, or alternatively they can choose to transfer their loan to either the Society’s Standard Variable Rate (SVR) or another remortgage deal.

The product comes with a 1% early repayment charge for those who may wish to come out of the deal within the fixed rate period, although no early repayment charge will apply if a borrower chooses to switch at the end of a rollover period.

Tom Girling, product manager for mortgages at the Yorkshire, said: “Borrowers entering the final years of their mortgage often have little option other than to fix onto a new deal and face hefty early repayment charges if they need to redeem their loan