First-time buyers are being given a boost onto the housing ladder, with a new market-leading rate from Yorkshire Building Society.

The two-year discounted rate mortgage is priced at just 1.54% for borrowers with a modest 10% deposit.

It’s available to buyers as well as remortgagors and comes with a £1,495 fee, or there is a fee-free version on offer at 2.49%.

The deals come with £250 cashback on completion and a free standard valuation for those looking to buy a new home, plus free legal fees for remortgage customers.

Charles Mungroo, product manager at Yorkshire Building Society, said: “We’re really proud to launch this market-leading rate, which is currently the lowest two-year mortgage available at 90% LTV.

“Getting on the property ladder can be tough, so we want to help as many people as possible to achieve their dream of homeownership. We hope our new offering will appeal to first-time-buyers and borrowers with smaller deposits who want to make the most of a low rate, and benefit from a potential reduction in their monthly repayments if our SVR reduces.”

Rachel Springall, finance expert from Moneyfacts, added: “This brand new deal from Yorkshire Building Society comes at a perfect time for any borrower who may have a limited deposit but still wants to take advantage of a low rate with a trusted brand. As with any mortgage deal, borrowers would be wise to work out the overall true cost to see if it’s the best possible choice for them.”