Yorkshire Building Society has cut its rates on mortgages for borrowers who want to minimise the upfront costs of moving or remortgaging by up to 0.15 per cent.
The society is offering a 2.59 per cent two-year fixed rate with no product fee, free standard valuation for borrowers with a 10 per cent deposit, with £250 cashback on completion for those buying a home and free standard legal fees for those remortgaging.
For borrowers with a 5 per cent deposit, the society is offering a 3.84 per cent two-year fixed rate, or a 4.49 per cent five-year fixed rate, with no product fee, free standard valuation and £250 cashback on completion.
Brendan Gilligan, mortgage product manager at Yorkshire Building Society, said: “As one of the UK’s largest mutual lenders, we understand how important home ownership is to young people, with our research showing that most adults under 40 prioritise buying a property over important life events such as getting married and having children.
“We also know how expensive buying your first home can be, so we’ve cut our rates on fee-free mortgages to help those trying to get onto the property ladder to minimise their upfront costs.”
Ronan Marrion, mortgage specialist at Truro-based IFA Worldwide Financial Planning, said: “It is a welcome move to see any lender offer these fee-free options as many first-time buyers struggle to find the deposit they require and then find they have valuation fees, arrangement fees, etc, to factor in.
“On top of this the two-year fixed rate is very competitive and I am sure it will be in great demand.
“The 95 per cent options LTV are a little higher than what is currently around and face stiff competition from the likes of Santander, Halifax and Natwest.”