Yorkshire Building Society is launching a market-leading 0.99% two-year fixed mortgage, its lowest ever fixed rate product.

The new low rate deal will be available from today to remortgage and home purchase customers borrowing 60% of the cost of their property, so you need a 40% deposit to bag the record low rate.

The mutual said that this is currently the only fixed rate available anywhere in the market at less than 1%.

Choice of fee

The deal comes with a £1,495 fee, although lower fee and fee-free mortgages are available and could be more suitable for those borrowing less, or who wish to keep up-front costs down.

James Farrow, senior mortgage manager the mutual, said: “We have seen fixed mortgage rates creep up gradually in recent months so seeing it fall to 0.99% is very welcome news for borrowers.

“We always seek to keep the cost of borrowing as low as possible and offering the lowest fixed rate mortgage in our 152-year history clearly reflects that.”

Rachel Springall, finance expert at Moneyfacts.co.uk, added: “This brand new market-leading two-year fixed mortgage from Yorkshire Building Society is likely to delight borrowers hoping to take advantage of a competitive fixed rate with a trusted brand.

“It also has some flexibility by allowing overpayments and borrowers would be wise to take full advantage of this to reduce the mortgage term. As with any deal, it’s important that borrowers work out the overall true cost to see if it’s the best possible choice for them.”