Yorkshire has cut the rates on a number of its first-time buyer mortgages to the lowest in the market.
The building society has reduced the rate on its two-year fix at 95 per cent loan-to-value (LTV) to 3.15 per cent, with £250 cashback available on completion.
It means the product has the lowest rate currently available without a local area restriction, according to Moneyfacts.
The lender has also launched a market-leading two-year fix for buyers and remortgagers with a rate of 1.32 per cent at 85 per cent LTV.
It is currently the lowest two-year fix at 85 per cent LTV available on the high street or direct to consumers.
Both mortgages come with a £995 product fee.
Charles Mungroo, mortgage manager for Yorkshire Building Society, said: “We’re committed to offering a variety of competitive home loan options to suit a range of borrowers’ needs and are proud to be able to offer the lowest rates currently available from any provider.
“We hope our latest rate reductions will appeal to customers with smaller deposits and help first-time buyers get a foot on the property ladder.”
Intermediaries have previously expressed concerns that Yorkshire products are only available on a direct-to-consumer basis – but Ruth Whitehead, principal at London-based Ruth Whitehead Associates, dismissed such sentiments.
“If you are an intermediary and it is the best deal for the client, your best advice is to tell them to take that deal,” she added. “If you are not doing that, you are not an ethical financial adviser.
“I always say to a client ‘have you checked with your bank?’ first. Yes, I lose one or two clients, but I also enhance our existing reputation for business deals.
“Our business continues to grow and turnover increases year-on-year because we have an ethical business model. It is profitable.”
Yorkshire offers a range of mortgage products to intermediaries via Accord Mortgages.
simon.allin@ft.com
