Yorkshire offers cheapest 90% LTV variable rate mortgage

Available to buyers and borrowers looking to remortgage from tomorrow (17 January), the 90 per cent loan-to-value (LTV) variable mortgage tracks the Yorkshire’s standard variable rate (SVR), currently at 4.74 per cent, at a discounted rate of 3.2 per cent.

The mortgage has an interest rate collar of zero per cent allowing the customer to benefit from any reductions to the lender’s SVR until their interest rate payable reaches the collar.

They would also pay more if the SVR was increased.

After the initial term of two years the mortgage rate will revert to Yorkshire’s SVR.

The mortgage has a £1,495 product fee.

For borrowers at this LTV seeking a mortgage with a lower product fee, the Yorkshire also offers a two-year fixed rate mortgage at 2.49 per cent with no upfront fee.

It comes with £250 cashback on completion and free standard valuation for those looking to buy a new home, and free standard valuation and free legal fees for remortgage customers.

We hope our new offering will appeal to first-time-buyers and borrowers with smaller deposits who want to make the most of a low rate.Charles Mungroo

Charles Mungroo, product manager at Yorkshire Building Society, said: “Getting on the property ladder can be tough, so we want to help as many people as possible to achieve their dream of homeownership.

“We hope our new offering will appeal to first-time-buyers and borrowers with smaller deposits who want to make the most of a low rate, and benefit from a potential reduction in their monthly repayments if our SVR reduces.”

Rachel Springall, finance expert from Moneyfacts, said: “This brand new deal from Yorkshire Building Society comes at a perfect time for any borrower who may have a limited deposit but still wants to take advantage of a low rate with a trusted brand.

“As with any mortgage deal, borrowers would be wise to work out the overall true cost to see if it’s the best possible choice for them.”

Yorkshire Building Society also offers a 0.98 per cent two-year discounted standard variable rate mortgage at 65 per cent LTV, which is available to borrowers who are looking to buy or remortgage their home.

emma.hughes@ft.com