Yorkshire Building Society launches 'best buy' mortgage deal and reduces rates across range by up to 0.20%
This is the Building Society's second August rate cut to help prospective home buyers
PA
Yorkshire Building Society has reduced the interest rates across its mortgage range by up to 0.20 per cent, including a new Best Buy product.
Their £5,000 Deposit Mortgage product, which provides mortgages to first-time buyers with a £5,000 deposit, has seen a 0.15 per cent rate reduction and is now priced at 6.24 per cent.
This mortgage deal became available in March and the mutual will lend against properties up to a maximum value of £500,000.
This means borrowers can effectively access a 99 per cent loan-to-value (LTV) mortgage.
Other reductions include a two-year fixed rate, down from 4.54 per cent to 4.39 per cent, at 75 per cent LTV.
This is available for remortgage, with a £1,495 fee, and offers a free standard valuation as well as a free remortgage legal service.
Other reductions include a two-year fixed rate, down from 4.54 per cent to 4.39 per cent, at 75 per cent LTV
PAThere is also a three-year fixed remortgage deal that has been lowered from 4.49 per cent to 4.34 per cent, up to 75 per cent LTV.
This has a £1,495 fee, free standard valuation and free remortgage legal service.
At 90 per cent LTV, Yorkshire Building Society has reduced the mortgage rate of a five-year fixed purchase product from 5.44 per cent to 5.24 per cent.
This has no fee, offers £2,000 cashback and comes with a free standard valuation.
Aidan Smith, product manager, said: “We’re delighted to announce our second August rate cut, and particularly pleased that the window of opportunity provided by market conditions has enabled us to lower the cost of our £5,000 Deposit Mortgage offering a much-needed helping hand to first-time buyers.
“We’ll continue to closely watch developments with a view to seizing further opportunities to pass on further value wherever possible.”
Rachel Springall, Finance Expert at Moneyfacts, said: “It’s great to see Yorkshire Building Society cut mortgage rates, particularly on deals that offer incentives and are available to borrowers looking to remortgage.
“These are the deals which could be in high demand in the months ahead for those coming off a fixed deal, or for those sitting on a variable revert rate and are keen to refinance.”
Yorkshire Building Society is not the only lender to cut their rates.
As mortgage rates continue to edge lower, as Nationwide also announced a fresh round of cuts.
They have reduced their fixed rate deals by up to 0.26 percentage points.
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The new rates will include the cheapest five-year fixed rate deal on the market. It will offer home movers buying with at least a 40 per cent deposit a rate of 3.78 per cent, which is the market best buy.
On a £200,000 mortgage being repaid over 25 years, that would leave someone paying £1,032 a month.
The product comes with a hefty £1,499 fee, which needs to be factored in even though the next best rate is substantially higher at 3.84 per cent, offered by HSBC.
Nationwide is also offering a £999 fee option on the same terms with a rate of 3.83 per cent. For home movers buying with a 25 per cent deposit, it is offering a 4.09 per cent five-year fix with no fee.