Yorkshire Building Society has launched a market-leading remortgage rate to help borrowers in the run-up to the biggest mortgage maturity period in five years.
The two-year fixed rate at 65 per cent loan-to-value (LTV) has an interest rate of 1.19 per cent and comes with a £995 fee and £500 cashback.
Moneyfacts has confirmed it is the lowest ‘true cost’ two-year fix as of 30 August, with borrowers paying less over the term of the loan than the lowest-rate product currently on the market – a 1.14 per cent fix with a £1,695 fee and no cashback.
More than £35bn-worth of mortgages are due to mature in September and October, according to CACI’s Mortgage Market Database.
Charles Mungroo, mortgage manager at Yorkshire Building Society, said: "With so many maturities in the next couple of months now is the perfect time to support those looking for a new deal with a range of different options to meet a variety of needs.
"We hope by reducing rates on mortgages and adding attractive additional features to selected mortgages it will ease the cost of remortgaging for borrowers and give them a helping hand at what can become an expensive time.”
The building society has made a wave of rate cuts on selected remortgage and house purchase options, alongside the addition of features such as free standard valuation, free legal service and cashback on completion of up to £500.
Borrowers looking to lock in for longer can take advantage of a five-year fix at 75 per cent LTV, which has an interest rate of 2.39 per cent.
The deal comes with free standard valuation, free legal service and cashback on completion of £250, and does not have a product fee.
Yorkshire Building Society’s products are only available on a direct-to-customer basis.
Jane King, mortgage adviser at London-based Ash-Ridge Asset Management, was sceptical of Yorkshire’s claims for the two-year fix.
“It is good, but they are cherry-picking the low-risk stuff,” she added. “It is just marketing, and two weeks later they pull [the products].
“It is at the top end, but there are other lenders with similar rates that are available to intermediaries.”
simon.allin@ft.com
