ASX-listed mortgage franchise Yellow Brick Road has lowered its split home loan fixed rate.
The rate cut will allow consumers with a Yellow Brick Road Fixed Rate Combo Special or the Vow Fixed Rate Combo Special to fix part of their rate for two years at 3.99%, while keeping half of the loan at a variable rate.
“This has been an exciting year as we have been operating in the lowest rate environment in history,” Yellow Brick Road chief executive officer group funding and lending Andrew Zanchetta said.
“However, there is a growing amount of uncertainty as to what’s ahead for 2016. We’ve dropped the fixed rate on our split loan to provide the network with a market leading product suitable for customers that want a red hot rate locked in over the next two years but also the flexibility of the variable rate loan.”
The fixed rate special available to both owner occupiers and investors. The variable rates on the remaining portion of the loan currently run from 4.26% to 4.74% depending on the type of loan repayment, purpose and the amount.
“Our network is finding customers are becoming more interested in protecting themselves from the volatility of the variable rate market by locking in a fixed rate. However, many fixed rate home loans either disallow, or limit, extra repayments into the mortgage,” Zanchetta said.
“But by keeping a portion of your mortgage as a variable rate loan, you have the flexibility to make as many extra repayments as you want while also ensuring that some of your debt is market-linked. That way it won’t leave you high and dry if rates drop again.”
