Yorkshire Building Society is launching a two-year fixed rate mortgage at 3.25 per cent.
The lender is also launching a 1.97 per cent two-year fix to remortgage and home purchase customers with a 10 per cent deposit.
Both loans have a £995 product fee and £250 cashback on completion. They launch on Friday.
Yorkshire Building Society mortgage product manager Charles Mungroo says: “It’s been the season for record low mortgage rates, however the focus has mainly been on borrowers with larger deposits.
“We hope our latest rate reductions appeal to those with smaller deposits or equity amounts and the cashback offer will help to reduce the upfront costs of buying a home.”
Moneyfacts finance expert Rachel Springall says: “It’s fantastic to see Yorkshire Building Society offering first-time buyers not only an attractive rate but also an appealing £250 cashback.”