Yorkshire launches 'lowest ever' mortgage rate

Yorkshire launches 'lowest ever' mortgage rate

Yorkshire Building Society has launched a 0.98 per cent two-year discounted standard variable mortgage, a rate it said was its "lowest ever".

Available to buyers and borrowers looking to remortgage, the mortgage has a 65 per cent loan-to-value variable.

It tracks Yorkshire’s standard variable rate - currently at 4.74 per cent - at a discounted rate of 3.76 per cent. It has a £1,495 product fee.

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After the two years, the mortgage rate reverts to Yorkshire’s standard variable rate..

Brendan Gilligan, product manager at Yorkshire Building Society, said the rate was "the lowest mortgage rate we’ve ever had". 

“It will appeal to customers who are keeping an eye on interest rates because as well as being the lowest rate available from any provider, it also have the potential to reduce further if the bank rate drops.”

Rachel Springnall, finance expert from Moneyfacts, said the mortgage was the lowest rate on the market for borrowers looking to remortgage, and the joint lowest for purchase customers.

Borrowers who redeem their mortgage during the discounted period will incur a 1 per cent early repayment charge. Yorkshire said this was lower than its typical fixed rate ERCs. 

The home loan is portable, allowing customers to transfer their mortgage to a new property without charge.