Yorkshire Building Society has launched a 0.98 per cent two-year discounted standard variable rate mortgage – its lowest ever rate.
Available to buyers and borrowers looking to remortgage, the 65 per cent LTV variable mortgage tracks the Yorkshire’s SVR, currently at 4.74 per cent.
The loan has a discounted rate of 3.76 per cent. It has a £1,495 product fee.
The mortgage has an interest rate collar of 0 per cent. After the initial term the mortgage rates will revert to Yorkshire’s SVR.
Yorkshire Building Society product manager Brendan Gilligan says: “We’re really proud to launch this market-leading rate – it’s the lowest mortgage rate we’ve ever had.
“It will appeal to customers who are keeping an eye on interest rates because as well as being the lowest rate available from any provider, it also have the potential to reduce further if the Bank Rate drops.”
Moneyfacts finance expert Rachel Springnall says: “This new two-year discounted rate from Yorkshire Building Society offers the lowest rate on the market for borrowers looking to remortgage and joint lowest for purchase customers, and is likely to delight those hoping to take advantage of a low rate with a trusted brand.”
Borrowers can redeem their mortgage at any time during the discounted period for a 1 per cent early repayment charge.
The home loan is portable, meaning customers can transfer their mortgage to a new property without charge.