Free home insurance with mortgage

A new mortgage policy has been unveiled by Yorkshire Building Society, offering free home insurance .

The provider's First Time Buyer product is a two-year fixed rate mortgage at 5.99 per cent, available with a ten per cent deposit.

Among the incentives for taking it up are £387 worth of free home insurance cover, Free valuation reports and £500 cashback.

Tom Girling, Mortgage Product Manager, said: We've tried to balance the need to help first time buyers with the need to lend responsibly and designed the new range to provide different ways to help those who are just starting out.

We are now lending to people with smaller deposits and waiving many of the fees. This can save around £2,500 which can make such a difference to the amount a borrower can put down as a deposit.

Meanwhile, Leeds Building Society recently launched a three-year fixed rate mortgage that offers a discount with a home insurance policy .