Yorkshire has broken new ground by becoming the only lender in the market to offer a fixed rate mortgage of less than 1 per cent.
The 0.99 per cent two-year fixed rate deal will be available from Friday (17 March) to remortgage and home purchase customers borrowing 60 per cent of the cost of their property – but it will not be distributed via brokers.
Coming with a fee of £1,495, the product is the first fixed rate mortgage in the building society’s history with a rate of less than 1 per cent.
As a result, Yorkshire claimed it now offers the lowest fixed and tracker mortgage rates in the market.
James Farrow, Yorkshire Building Society senior mortgage manager, said: “We have seen fixed mortgage rates creep up gradually in recent months so seeing it fall to 0.99 per cent is very welcome news for borrowers.
“We always seek to keep the cost of borrowing as low as possible and offering the lowest fixed rate mortgage in our 152-year history clearly reflects that.”
Rachel Springall, finance expert at Moneyfacts, said: “This brand new market-leading two-year fixed mortgage from Yorkshire Building Society is likely to delight borrowers hoping to take advantage of a competitive fixed rate with a trusted brand.
“It also has some flexibility by allowing over payments and borrowers would be wise to take full advantage of this to reduce the mortgage term. As with any deal, it’s important that borrowers work out the overall true cost to see if it’s the best possible choice for them.”
simon.allin@ft.com
