Yorkshire Building Society launches market-leading first-time buyer deals
Yorkshire Building Society has launched a range of mortgage deals specifically for borrowers with modest deposits – and they lead the market, with uber-low interest rates.
The mutual has reduced its 95% loan-to-value (LTV) two-year fixed rate mortgage to 3.15%, the lowest currently available in the mortgage market for buyers with just 5% upfront, with an added benefit of £250 cashback to borrowers on completion.
Buyers and remortgage customers with a slightly larger 15% deposit can also bag a market-leading two-year fixed rate mortgage at 85% LTV at 1.32%.
Both deals come with a £995 product fee.
Charles Mungroo, mortgage manager for Yorkshire Building Society, explained the latest cut to rates: “We’re committed to offering a variety of competitive home loan options to suit a range of borrowers’ needs and are proud to be able to offer the lowest rates currently available from any provider.
“We hope our latest rate reductions will appeal to customers with smaller deposits and help first-time buyers get a foot on the property ladder.”
Rachel Springall, finance expert at Moneyfacts.co.uk, added: “First-time buyers searching for a competitive interest rate on their mortgage and who have amassed a 5% deposit will be delighted by this new deal priced at 3.15% from Yorkshire Building Society as it becomes the lowest rate currently on the high-street.
“The deal priced at 1.32% at 85% LTV will likely cause a stir with numerous borrowers thanks to its market-leading rate, particularly those looking to remortgage with a trusted brand. As with any deal, applicants must work out the overall true cost of the mortgage by taking the fees and incentives into consideration before entering any arrangement.”