Yorkshire Building Society said it has cut rates by up to 0.2 percentage points in its second rate reduction of the month.
Highlights from the society’s new product range include a ‘best buy’ two-year fixed rate at 4.39% up to 75% of the property’s value, which is for remortgages. The product comes with a £1,495 fee, free standard valuation and free remortgage legal service.
The mutual has also cut its three-year fix to 4.34% from 4.49% up to 75% loan to value (LTV), which is for remortgagors. The deal carries a £1,495 fee and offers a free standard valuation and free remortgage legal service.
Borrowers with a smaller deposit of 10% can access a fee-free five-year fix at 5.24% (reduced from 5.44%) up to 90% LTV, which is for house purchase. This product comes with £2,000 cashback and a free standard valuation.
£5k Deposit Mortgage gets cheaper
The society has also reduced the rate on its £5k Deposit Mortgage five-year fix to 6.24% (from 6.39%).
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This mortgage allows borrowers to buy a home worth up to £500,000 with a £5,000 deposit, with no fee and a free standard valuation.
Aidan Smith, product manager at Yorkshire Building Society, said: “We’re delighted to announce our second August rate cut, and particularly pleased that the window of opportunity provided by market conditions has enabled us to lower the cost of our £5k Deposit Mortgage, offering a much-needed helping hand to first-time buyers.
“We’ll continue to closely watch developments with a view to seizing further opportunities to pass on further value wherever possible.”
Rachel Springall, finance expert at Moneyfacts, added: “It’s great to see Yorkshire Building Society cut mortgage rates, particularly on deals that offer incentives and are available to borrowers looking to remortgage.
“These are the deals [that] could be in high demand in the months ahead for those coming off a fixed deal, or for those sitting on a variable revert rate and [who] are keen to refinance.”
