Clydesdale and Yorkshire Banking Group has launched a new fixed-rate mortgage with a rate of 2.29 per cent.
In addition to the new three-year fixed-rate mortgage, the banks also announced lower rates on a wide range of mortgages including their first-time buyer mortgages, fixed rates and re-mortgages.
The mortgage lenders said the new lower rates are aimed at those who want to remortgage and also first-time buyers, who want to get on the property ladder.
On mortgages with a maximum loan size of £500,000, there is a two-year fixed rate at 1.94 per cent, a three-year fix at 2.29 per cent and a five-year fix at 2.64 per cent.
All three products have a fee of £999 and a loan to value of 90 per cent. They also apply to loans of at least £150,000.
For first-time buyers, there are two three-year products; one with a fixed rate of 2.69 per cent at 90 per cent LTV and another with a fixed rate of 3.89 per cent at 95 per cent LTV.
With both products customers will be offered £250 cash back and there is a zero fee.
For those who want to remortgage there are three two-year fixed-fee products.
The first has fixed rate of 1.59 per cent at 60 LTV, the second has a rate of 1.74 per cent at 75 per cent LTV, while the third has a fixed rate of 1.89 per cent at 90 per cent LTV.
All three products must have a minimum remortgage value of £100,000.
There is also a fourth remortgage offering, which is a five-year fixed-fee offer of 2.24 per cent at 75 per cent LTV.
The changes at Clydesdale and Yorkshire have come at a time when other lenders are increasing their rates ahead of an anticipated increase in base rates.
Fergus Murphy, group customer value director at Clydesdale Bank and Yorkshire Bank, said: “Getting a mortgage should be a straightforward part of the home finding process which is why we are also offering same day appointments across all of our branches.
“Our new lower rates are specially designed to appeal to those moving up the property ladder and those re-mortgaging as well as helping first time buyers buy their first home.”
Carl Shave, director at Suffolk-based The Mortgage Centres, said: “The revised rates from Clydesdale and Yorkshire banks puts them in a much better position in the respective target areas they have aimed these in. The market continues to be a very competitively priced environment and with simple small tweaks a lender can look to achieve the results it wishes to attract in necessary business volumes."
£999 or zero fee depending on product.
These products are likely to be welcome by advisers, because Clydesdale and Yorkshire banks appear to be making their products more keenly priced when some lenders have increased their rates in recent weeks.