A Rollover from the Yorkshire

The UK's second largest mutual believes its Rollover Mortgage is the first loan that is specifically aimed at people who are in the final years of their mortgage term.

It offers people the chance to keep fixing their mortgage rate for one year, and it is currently offering a rate of 2.69 per cent.

When the one-year fixed rate comes to an end, borrowers will be given the option to fix for a further year, or transfer their mortgage to the society's standard variable rate (SVR), which is currently 4.99 per cent, or take out another product.

The deal comes with an arrangement fee of 495, as well as free legal assistance and valuation and one year's free home insurance.

But it is only available to people who have a mortgage of more than 25,001 but still owe less than 35 per cent of their home's value.

Homeowners who want to repay their loan early will face a 1 per cent early redemption charge if they pay it off during one of the one-year fixed rate periods, but they will not face any fees if they wait until the one-year period has ended.

Tom Girling, product manager for mortgages at Yorkshire Building Society, said: "We wanted to create a product that offered a fantastic rate, short-term security and the flexibility to assess your options each year."