Mortgages  

Yorkshire and Chelsea cut mortgage rates to below 1.4%

Yorkshire Building Society and Chelsea Building Society have launched mortgages at 1.39 per cent and 1.38 per cent for borrowers with 35 per cent deposits.

Borrowers with 35 per cent deposits looking for a mortgage fixed for three years can now receive the rate of 2.18 per cent, reduced from 2.34 per cent, including an £845 product fee from the Yorkshire.

Chelsea customers are being offered a rate of 2.14 per cent, reduced from 2.24 per cent, with a £1,545 product fee.

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Other Yorkshire reductions include: a three-year fixed at 3.49 per cent, reduced from 3.99 per cent with an £845 product fee for borrowers with a 10 per cent deposit.

A three-year fixed at 2.99 per cent, reduced from 3.29 per cent, with an £845 product fee for borrowers with a 15 per cent deposit, and a two-year fixed at 2.49 per cent, reduced from 2.54 per cent, with an £845 product fee for borrowers with a 15 per cent deposit.

Other Chelsea reductions include: a three-year fixed at 3.44 per cent, reduced from 3.94 per cent, with a £1,545 product fee for borrowers with a 10 per cent deposit.

A three-year fixed at 2.94 per cent, reduced from 3.24 per cent, with a £1,545 product fee for borrowers with a 15 per cent deposit, and a two-year fixed at 2.44 per cent, reduced from 2.49 per cent, with a £1,545 product fee for borrowers with a 15 per cent deposit.

Clare Slater, mortgage product manager for the group, said: “We believe that these rate reductions on popular LTV brackets will offer borrowers an appealing product.

“The reductions at 90 per cent LTV will also help some first-time buyers make their first step on to the property ladder.”

peter.walker@ft.com