Lowest-ever mortgage rate launched by Yorkshire Building Society
Mortgage rates have hit an all-time low this week with a stonking new deal launched by Yorkshire Building Society.
The mutual has launched the lowest mortgage rate ever available in the UK at 0.89% – a two-year discounted rate.
It’s not available to all borrowers though. To bag the deal you need to have at least a 35% deposit and be willing to cough up a £1,495 fee.
After two years the rate reverts to Yorkshire Building Society’s standard variable rate which is currently 4.74%.
For those borrowers who prefer a fixed rate, the mutual is continuing to offer the joint-lowest ever, and lowest currently available, fixed rate mortgage at 0.99% for loans up to a maximum of 60% LTV.
James Farrow, senior mortgage manager at Yorkshire Building Society, said: “We are very pleased to offer borrowers the lowest mortgage rate ever available.
“The cost of funding has fallen in recent weeks and as a financially strong building society with no external shareholders to satisfy we have the ability to pass this on to borrowers.”
Rachel Springall, finance expert at Moneyfacts, added: “Those looking for more flexibility over the shorter term may prefer a discounted deal, but those looking for some security could choose the fixed rate.
“In such a low interest rate environment it would be ideal for borrowers to consider overpaying their mortgage. As with any option borrowers would be wise to weigh up the entire package before entering any arrangement.”