Yorkshire Building Society has launched its first sub-4% mortgage since September 2022.

The lender is also reducing rates across its range by up to 0.25 percentage points.

The changes include a five-year fixed rate mortgage at 3.98%, up to 75% of the property’s value, for remortgage purposes. It comes with a £1,495 fee, remortgage legal services and free standard valuation.

There is also a five-year fix for house purchase, again up to 75% of the property’s value, with a rate of 4.09%, with a £1,495 fee and free standard valuation.

And, aimed first-time buyers, there is a fee-free five-year fix to 90% of the property’s value at 4.77%, with £1,000 cashback as well as free standard valuation.

Eleanor Williams, finance expert from Moneyfacts said: “The latest update from Yorkshire Building Society features some competitively priced new products which may appeal to various types of mortgage borrowers, from those looking to take a step onto the property ladder to those refinancing their current home.

“A number of these new options take their place within our Best Buy tables, and are welcome additions to a bustling sector based on assessment of their overall true cost.”

Yorkshire Building Society’s director of mortgages, Ben Merritt, added: “We’re acutely conscious that, as we come out of the main winter period and as government help with energy bills comes to an end, consumers will start to feel the cost-of-living crisis even more keenly.

“With this in mind, we’re actively monitoring market developments and are committed to taking every possible opportunity to pass on savings to help people reduce what is, for most, their biggest monthly outgoing.”