The society has also introduced a new five-year fixed rate priced at 2.44%, available up to 65% loan-to-value (LTV), which comes with a £1,345 fee.

The 10-year fix is available up to 75% LTV and has no fee. Yorkshire BS is also launching a two-year fixed rate charged at 1.69%, available up to 65% LTV, which comes with a £1,345 fee.

Over 80% of borrowers are currently opting for fixed rate mortgages.

Ray Boulger, senior technical manager at John Charcol said:

“Despite swap rates following gilt yields upwards, the cost of fixed-rate mortgages has continued to fall. This says a lot about the margins lenders had in hand and also reflects a much stronger appetite to lend compared to a year ago. Although the desire to increase lending is being reflected in cheaper mortgages, there is little evidence so far of any material relaxation in criteria.”

Brendan Gilligan, product manager at Yorkshire Building Society, said:

“We have witnessed a real demand for longer-term mortgages and are confident that these latest rate cuts will be welcome news to the mortgage market. We understand that, for most homeowners, their monthly mortgage payment is one of their biggest financial commitments and these excellent competitive rates help them plan for the longer term.”